UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Exit Consent Solicitations Post-Assenagon: A Relic of the Past?

Kanchev, T; (2020) Exit Consent Solicitations Post-Assenagon: A Relic of the Past? UCL Journal of Law and Jurisprudence , 9 , Article 5. 10.14324/111.2052-1871.128. Green open access

[thumbnail of Exit Consent Solicitations Post-Assenagon- A Relic of the Past_.pdf]
Preview
Text
Exit Consent Solicitations Post-Assenagon- A Relic of the Past_.pdf

Download (327kB) | Preview

Abstract

This case note considers the Assenagon judgment, which reviewed the position of exit consent solicitations in English law. Exit consent solicitation is a restructuring technique utilised in cases where a company in financial distress seeks to reorganise its debts, more specifically its bonds. In order to avoid the strenuous process of insolvency, such bond issuers put forward an exchange offer, which permits the swap of distressed bonds for newly issued ones. The exchange offer is then coupled with an exit consent, which makes it a condition of the exchange that the bondholders firstly agree to an amendment of the original terms of the defaulting bonds. Such a move allows the issuer to reorganise its financial affairs in order to keep the company afloat. Briggs J did not see the purpose of exit consents positively. He held in Assenagon that such an exchange offer coupled with exit consents was invalid by virtue of the ‘abuse principle’ as the majority, at the invitation of the issuer, took part in ‘coercing’ the minority to swap their bonds. This case note outlines the key elements of Briggs J’s ruling and discusses the future of exit consents post-Assenagon.

Type: Article
Title: Exit Consent Solicitations Post-Assenagon: A Relic of the Past?
Open access status: An open access version is available from UCL Discovery
DOI: 10.14324/111.2052-1871.128
Publisher version: https://doi.org/10.14324/111.2052-1871.128
Language: English
Additional information: © 2020, The Authors. This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY) 4.0 https://creativecommons.org/licenses/by/4.0/, which permits unrestricted use, distribution and reproduction in any medium, provided the original author and source are credited.
Keywords: Exit Consent Solicitations, Debt Restructuring, Assenagon v Irish Bank Resolution
URI: https://discovery.ucl.ac.uk/id/eprint/10106937
Downloads since deposit
269Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item