Daniel Lombardi, our Partner and Principal of Strategic Financial Advisory had a conversation with Valor Econômico regarding the conversion of debt into shares within the scope of corporate restructurings.
In the article, Lombardi states that converting debt into shares is one of the options, among other alternatives within the scope of corporate recoveries, such as extensions in deb maturities and sale of assets. It’s a more complex solution, as its implementation also depends on the creditor’s profile. While the “Special Sits” funds are prepared to take on the management of ailing companies, commercial banks are typically less proactive in this regard.
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