Asset Sales

While corporate restructuring is an option financially distressed companies often proactively explore to reduce their debt burden, another alternative that has recently gained some notoriety is a liability management transaction (LMT). Put simply, an LMT is a seemingly clever maneuver to modify capital structures by shifting collateral around to benefit one set of creditors at the expense of others. This assists the company with fresh capital, suspended/waived debt service obligations, extended maturities, or some combination thereof.