Private equity in distress and the incentives of collateralised loan obligations

Paterson, Sarah ORCID: 0000-0002-7862-4919 (2024) Private equity in distress and the incentives of collateralised loan obligations. Current Legal Problems, 77 (1). 13 - 48. ISSN 0070-1998

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Abstract

This article explores the problem that both modern private equity (PE) firms, and collateralised loan obligation (CLO) lenders to PE portfolio companies, have incentives to avoid a formal restructuring of PE portfolio companies in financial distress. The author is concerned that this may lead to negative social costs for suppliers, employees, customers and even government agencies... She explores how and why the problem arises, and the ways in which corporate and corporate insolvency law might be able to respond to it. Some suggestions are made, but it is accepted that any solution involves a sensitive balance that needs to be approached with considerable care.

Item Type:	Article
Official URL:	https://academic.oup.com/clp
Additional Information:	© 2024 The Author
Divisions:	Law
Subjects:	K Law
Date Deposited:	04 Mar 2024 16:24
Last Modified:	17 Dec 2024 12:36
URI:	http://eprints.lse.ac.uk/id/eprint/122163

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