Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494420
What are Liability Management Transactions? Liability management transactions are transactions undertaken by a company to restructure liabilities on its balance sheet. Liability management transactions allow companies to manage their ongoing debt obligations and enhance their balance sheet by: • Delaying amortisation payments and extending maturities • Reducing interest expense • Adjusting covenants • Reducing leverage and improving financial ratios • Restructuring debt to avoid bankruptcies • Recognising gains through purchase and cancellation of debt 4 Liability Management and Refinancing Solutions in Europe