Clifford Chance

Workin' at the (IMO) Car Wash – 'You might not ever get rich'

10 September 2009

For the junior lenders and shareholders of the IMO Car Wash Group (IMO), the world's largest car wash company, the opening line of the 1970s soul classic could not have been more appropriate. On 11 August 2009, an English Court sanctioned a restructuring which leaves the junior lenders and shareholders out of the deal. The case is perceived by many commentators as setting a new legal precedent for the valuation of distressed assets. It may have a significant effect on a number of high profile restructurings in the current market, most notably in relation to the deleveraging that is taking place in respect of over-burdened balance sheets.

Clifford Chance has prepared a briefing note in which partners from our Restructuring Group consider the implications of the decision and how it may affect the current restructuring market. To view a copy of the briefing, click on the link below.

Download PDF