COVID-19: Certain Financing and Restructuring Considerations

On March 23, 2020, Cravath prepared a resource for clients entitled “COVID‑19: Certain Financing and Restructuring Considerations,” which examines the decision points an increasing number of companies may face due to business disruption caused by COVID‑19. The materials discuss how near‑term revenue challenges, liquidity constraints and obstacles to debt service make it imperative that companies consider proactive measures to bolster near‑term liquidity, including through the careful preservation of cash and assessment of currently available and potential new financing options. For already and newly distressed companies, particularly in sectors in which COVID‑19 is exerting extreme revenue pressures, it is a critical time to engage with creditors and develop negotiation strategy, as well to consult restructuring advisors. For some companies, chapter 11 preparations may be necessary as a fallback alternative to be considered in parallel with creditor negotiations.

Please click here to read the resource.