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Case
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Reference no. 9-293-078
Published by: Harvard Business Publishing
Originally published in: 1993
Version: 29 October 1993
Length: 22 pages
Data source: Published sources

Abstract

The Brent Walker Group completed the largest out-of-court restructuring in the United Kingdom. After overexpansion in the 1980s, the company pursued a large acquisition financed with debt and then encountered falling asset prices. With the assistance of the Bank of England, the company reached an accommodation with its lenders involving deferral of interest and conversion of debt to equity. The case presents the negotiating challenges faced by the company's creditor classes and portrays the distinct roles of management, shareholders, and directors in UK restructuring. When studied in comparison with US restructuring practices, the situation provides an interesting example of an international reorganization.
Location:
Industry:
Other setting(s):
1990-1922

About

Abstract

The Brent Walker Group completed the largest out-of-court restructuring in the United Kingdom. After overexpansion in the 1980s, the company pursued a large acquisition financed with debt and then encountered falling asset prices. With the assistance of the Bank of England, the company reached an accommodation with its lenders involving deferral of interest and conversion of debt to equity. The case presents the negotiating challenges faced by the company's creditor classes and portrays the distinct roles of management, shareholders, and directors in UK restructuring. When studied in comparison with US restructuring practices, the situation provides an interesting example of an international reorganization.

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Location:
Industry:
Other setting(s):
1990-1922

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