Bondholders' New Power Play

Burns, Mairin
May 2003
Investment Dealers' Digest;5/12/2003, Vol. 69 Issue 19, p10
Trade Publication
In recent years as of May 2003, the restructuring business has seen the emergence of a powerful force: the bondholder committee. Bondholders are playing an increasingly high-profile role in today's restructurings. Now some of them are trying to use their newfound influence to try to be even more proactive in protecting their investment, and become the very agent that brings about the restructuring in the first place. Having watched Avado Brands Inc. lurch from one liquidity crisis to another, five investors holding more than 66 million dollars of its 109 million dollars 9.75 percent bonds made numerous attempts to draw Avado's management into negotiations for a consensual restructuring, but their overtures had been ignored


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