Private Credit Restructurings: Opportunities and Pitfalls When Direct Lenders and Sponsors Address Portfolio Company Distress
Register for the webinar here.
Join Reorg and Proskauer on Monday, Jan. 22, at 12 p.m. ET for a discussion on the latest trends in private credit restructurings. According to Proskauer’s Private Credit Default Index, the default rate for private credit issuers declined to 1.41% in the third quarter of 2023. However, according to a number of market participants, the private credit default rate will likely trend higher in 2024. Defaults in 2023, according to Proskauer, differed based on company size. For businesses generating more than $25 million of EBITDA, default rates picked up sequentially, but for those businesses generating less than $25 million, default rates declined. Private credit default rates are below the roughly 3% default rate for leveraged loans and high yield, and a significant number of private credit restructurings occur out of court.
We will discuss the reasons behind these trends including stakeholder dynamics and interactions before and after any restructuring between lender, borrower and sponsor. We will also discuss strategies for lenders and how sponsors are addressing distress in the private credit market.
Mark Fischer, director of credit research at Reorg, will moderate the webinar, and the presenters include:
- Catarina Moura, reporter at Reorg
- Charles Dale, partner at Proskauer Rose, Private Credit Restructuring Group
- David Hillman, partner at Proskauer Rose, co-head of Private Credit Restructuring Group
- Patrick Walling, partner at Proskauer Rose, Private Credit Group
Attendees will be invited to submit questions during the webinar.
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