Finance and restructuring partner and leader of the firm’s corporate restructuring team, Jim Millar, was quoted in a Financial Times article examining the growing impact of so-called “creditor-on-creditor violence” in distressed debt markets.
The article, “Losers in ‘creditor-on-creditor violence’ left with crumbs,” highlights a new Moody’s report showing that lenders disadvantaged in contested liability management exercises recover significantly less in subsequent bankruptcies compared with more traditional proceedings. The findings reflect a broader trend in which certain restructuring strategies can shift value among creditor groups and contribute to more complex and contentious outcomes.
Commenting on these dynamics, Millar noted, “People go through all this financial engineering to get ahead of somebody else … [losing lenders] are being disadvantaged in ways that they can’t predict.”
