Jason Maletic

Sep 21, 2023 | lexology.com | Michael Sloan |Alinta Kemeny |Stuart Dullard |Jacqueline Chan |Camilla Clemente |Jason Maletic

The United States restructuring market has coined the phrase "creditor-on-creditor violence" recently. It describes the taking advantage of loopholes in financing documents by certain existing or new lenders to the disadvantage of certain existing lenders. But in financially distressed scenarios, there is not only creditor violence but shareholder violence. We are seeing an increasing amount in Australia. So what is it and how should it be handled? Shareholder on shareholder violence is hardly new.