Litigating High-Yield Bonds
Key Considerations for Practitioners High-yield bonds, issued by companies with lower credit ratings, offer attractive returns but carry elevated risks. These instruments are often structured with complex covenants, payment-in-kind (PIK) provisions, and call or redemption features, which can complicate enforcement and litigation strategies. 1. Covenant Breaches 2. Disclosure and Misrepresentation Claims 3. Payment-in-Kind (PIK) and […]