Lawyer Monthly - April 2023

Can you give us some background into the Luxembourg Stock Exchange and your own bond restructuring practice? The Luxembourg Stock Exchange is the world’s leading exchange for the listing of international debt securities and green bonds. Luxembourg holding and finance companies are also incredibly popular with international conglomerates or in LBOs for tax and/or single point of enforcement purposes, including in bond deals. Therefore, bond restructuring processes often involve Luxembourg law aspects. In that context, Loyens & Loeff Luxembourg regularly advises clients on both the issuer and the creditor/investor side on the restructuring of bonds, including, for instance, in the following landmark bond restructuring deals: - Constellation Oil Services Holding S.A. and the other members of Brazil's Constellation group, a Brazilian oil-andgas drilling company, in its $1.5 billion global debt restructuring, including the restructuring of its $800 million bonds listed on the NY stock exchange; - The ad hoc group of holders of €350 million New York law-governed seniorsecured notes on the restructuring of the Löwen Play Group, a major German gaming operator; - Corestate, an investment manager and co-investor with €17.3 billion in assets under management in the core business and manager for the entire real estate value chain, with its bond restructuring process. How does your team assist in bond restructuring processes? Our advice generally includes structuring, insolvency, finance and strategic legal advice as to how to handle the bondholders or the Luxembourg issuer company in light of possible restructuring options and security enforcement options, but also the Luxembourg board’s liability concerns and duties. We are also often involved in the tax structuring of the warehousing structure and in considering the structuring of exit options. Consequently, our combined expertise in terms of bond restructurings encompasses legal advice with respect to Luxembourg capital markets, debt restructuring, corporate, finance and tax matters to help our clients navigate the negotiations with the stakeholders, SPECIAL FEATURE 43 Special Feature As one of the world’s most high-profile stock exchanges, Luxembourg and its legal system are often the backdrop for large bond restructuring processes. But what do these processes entail, and how does an experienced law firm handle them? Here, Anne-Marie Nicolas and Noémi Gémesi from Loyens & Loeff offer their unique insights. Bond Restructuring in Luxembourg

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