IMO: careful valuation is key

Author: | Published: 1 Sep 2009

The approval of a restructuring scheme for IMO Carwash that favours senior lenders has been declared a precedent for junior lenders to fear. But the real point of the verdict is the valuation.The decision hinged on whether the restructuring should be organised according to the company’s value today, or, as the mezzanine lenders argued, on its potential future value.“The judgement was clear,” said Bruce Bell, a restructuring partner at Linklaters in London. “What...