In today’s complex restructuring environment, creditors are increasingly using joint cooperation agreements across different creditor groups to align interests.
In some situations, an ad hoc group can include senior lenders with significant cross-holdings in other parts of the capital structure. That may lead the group to consider expanding the cooperation agreement to include junior creditors that do not have a position in the senior facility.
With Glenn Agre actively advising in this space, we are seeing how these agreements can affect negotiation positions. While having a joint cooperation agreement can strengthen the group’s negotiating position vis-à-vis the borrower, it can also cause friction with non-cross-holding lenders concerned about their senior position and its treatment in any future LME.
Glenn Agre has extensive experience navigating these sophisticated arrangements, ensuring the creditor groups it advises are aligned and strategically positioned to achieve favorable outcomes in liability-management transactions.
