As companies and investors navigate an increasingly complex restructuring environment, liability management exercises (LMEs) are playing a prominent role in managing balance sheets, avoiding or preparing for restructurings and providing an opportunity to deploy capital.

In this briefing, we examine the growth of LMEs, the opportunities and challenges they present and the continuing role of court-led restructurings and security enforcement strategies.

Key takeaways:

• Liability management exercises are becoming more common in the US and Europe, creating new opportunities and challenges for companies, creditors and investors.
• A growing range of restructuring strategies, from LMEs to court-led processes in various jurisdictions, is giving stakeholders greater flexibility to reshape capital structures and protect value in distressed situations.
• Forum choice and cross-border recognition and implementation are critical considerations.