BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Canadian Law No Friend To Lbos

Market Movers

by Felix Salmon
Main
The Fed Scales Back its Growth Forecasts   The ETF-Squared: It Reallocates For You

Recent Blog Posts

Links

May 22 2008 12:00am 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.

. □

blog comments powered by Disqus
Real Business, Real Results
Out of the 'Family'

Did anyone at Microsoft ever watch the (gasp!) offensively funny show Family Guy?

Cruz Missile Lands

Ex-Morgan Stanley exec Zoe Cruz is now heading her own hedge fund. Are Wall Street's leaders done?

Scandal Chic

Martha, Bernie and Skilling know that what you wear for court can go a long way in public perception.

spotlight on

Health Care

Bad to the Bone No More

Companies such as General Mills say they're stepping up efforts to change employees' bad behavior and promote healthier lifestyles. Read More