Forward start facilities find use in restructuring

Author: | Published: 1 Sep 2009
The facilities stop US companies getting bogged down in Chapter 11

The product itself only emerged in the past few months. Now forward start facilities are evolving beyond their original use, helping distressed companies out of trouble.

A forward start facility is a new loan agreed between a member of an existing syndicate and the borrower that will begin once its facility matures. Essentially a refinancing agreed in advance. Borrowers get funding certainty in...