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15 Defaults and Workouts: Restructuring Project Financings

Nick Angel, Suzanne Szczetnikowicz

From: International Project Finance (3rd Edition)

Edited By: John Dewar

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 22 September 2023

Default and credit — Debt

This chapter discusses restructuring, which is defined as a transaction which results in some form of an adjustment to a project company’s capital structure, or the terms of its debt, which is intended to avoid a default and the subsequent failure of the business. In the context of project financing or a company operating a group of project assets, decisions taken relating to any restructuring can be driven by the strategic nature of the assets or the need to secure energy supply or the ongoing monetization of natural assets. Topics covered include restructuring protagonists (e.g. directors, financial creditors, sponsors, etc.); process (e.g. restructuring ‘trigger’, project finance covenants, impact of covenant ‘loosening’, etc.); and restructuring options (e.g. creditors’ rights under project finance documents, defaults during development/construction, defaults during operation, etc.).

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