Speaking Engagement

Stafford Publications presents a teleconference: Restructuring Alternatives for High Yield Bonds - Evaluating and Using Exchange Offers and Prepacks to Avoid Bond Default

Thursday, July 30 04:00 AM BST to 04:00 AM BST

Wednesday, July 29, 200910:00am - 11:30am PT // 1:00pm - 2:30pm ET

Paul Harner and Scott Saks, partners in the Paul Hastings Corporate department, will examine the restructuring alternatives available for high yield bonds, legal considerations when restructuring, and strategies for choosing and implementing the various alternatives.

DescriptionHigh yield bonds have long been a financing source for corporations and in leveraged buyouts. High yield bonds commonly known in the past as junk bonds typically pay higher returns than better quality bonds, which make them attractive to investors. However, they carry a higher risk of default.

Moody's predicts that 15% of high yield debt issuers will default this year, compared to a 4% average historically. Because refinancing options are limited in the current economy, issuers are restructuring outstanding bonds to preserve the value of their businesses and avoid bankruptcy.

Restructuring high yield bonds is a complex process involving multiple bondholders, specialized investors and intercreditor issues. Counsel advising issuers should cautiously consider the restructuring alternatives and understand the advantages and legal risks of each.

For additional information and discounted registration, please visit Stafford Publications.