Working through a Workout: A Practitioner\u27s Guide from the Perspective of Private Equity Sponsors, Venture Capital Funds and Other Significant Equity Investors

These troubled economic times present numerous concerns to the ongoing business. However, the dreaded workout scenario that arises when a corporation breaches its debt covenants should not be so feared. This Practitioner\u27s Guide will address the workout scenario and provide insight on how to negotiate with a lender and how to address the most common negotiating points in a workout with particular focus on the perspective of sponsors and other significant investors. Part I will discuss how a workout scenario arises and the positions and goals of the respective parties involved-the borrower, the lender and the sponsor. Part II lays out in detail the negotiation process and the relative points of leverage typically involved in a workout. This Practitioner\u27s Guide provides practical suggestions to increase the likelihood of successfully navigating a workout to the mutual benefit of all parties involved