Home > Views > Blogs > Market Movers > Canadian Law: No Friend to LBOs
EMAIL
PRINT
RSS
SHARE
TEXT SIZE:
SHARE
Send a copy to me

Separate multiple email addresses (max 20) with commas.

0/1500

Main
Annals of Hypocrisy, John Mackey Edi...   Extra Credit, Thursday Edition
May 22 2008 5:44PM EDT

Canadian Law: No Friend to LBOs

The news out of Quebec today really is quite stunning: a court has held that bondholders in Canada can effectively block a leveraged buy-out if their bonds will be downgraded to junk (as most are, in such situations). Steven Davidoff is incredulous:

If this decision stands, it likely will upend corporate law practice in Canada...
I am not sure the Canadian court fully appreciated the difference between debt and equity in rendering this decision.

All I know is that if this decision stands, expect a lot of interest in Canadian bonds. They've suddenly become significantly more attractive.

See more in

Loading...

Add Your Comment

Required fields are marked with an asterisk (*)
Add a comment

Recent Blog Posts

Archive

Previous
Dec
2008
Next


Also in Portfolio.com
Most Read
Most Emailed
Recently Commented