Loan-to-own

‘Loan-to-own’ describes investment strategies in which financial investors buy up claims against corporate debtors in order to acquire them in pre-insolvency restructuring negotiations or insolvency proceedings. This business model has its origins in the United States and has become a popular strategy in Germany as well. This book is the first of its kind to comprehensively examine debt-based takeovers. It offers a guide to the numerous types of transactions and their stakeholders, illustrates the development of the distressed debt market in the US and Germany, and analyses and evaluates the restrictions of the current civil, banking, corporate, insolvency and capital market law to highlight the need for reform. In particular, the author develops a creditor transparency scheme which will improve the coordination of insolvency and capital market law and which will ensure efficiency, flexibility and Germany’s potential for specialisation due to its status as a financial centre.