Issuers face numerous restructuring alternatives, both within and outside the bankruptcy process.

The Big Picture -

Issuers of high yield bonds trading at distressed levels can use exchange offers to restructure or modify their outstanding bonds in order to preserve the going concern value of their businesses and potentially avoid bankruptcy. These transactions can reduce cash interest expense, defer near-term maturities, provide security for bondholders, or eliminate or modify existing covenants. Additionally, “prepackaged” plans of reorganization (including those used as a “stick” in connection with an exchange offer) and “pre-negotiated” plans of reorganization can be of value.