04/23/2020 | News release | Archived content
Due to current economic challenges, we expect increased distress and defaults in the municipal and corporate debt markets, in the United States and globally. Bondholders and their attorneys will need to work very closely with their corporate trustee as they pursue strategies for recovery amid debt-market turmoil and uncertainty.
Your corporate trustee will not simply be a gatekeeper, but a committed, contributing partner on the deal team. Below, we highlight five critical ways a trustee can contribute to the success of a workout.
Trustees for defaulted bonds must consider themselves an integral part of a debt workout. A trustee must understand its fundamental purpose is to help bondholders maximize their recovery as quickly and efficiently as possible.
Here's what a distressed debt partnership looks like, starting even before appointment and throughout the restructuring process:
The trustee can enhance recoveries by thoughtfully and creatively collaborating with borrowers, bondholders and their professionals throughout the restructuring process. With challenges ahead for the economy, find a trustee partner that can help you efficiently navigate your recovery strategies.
UMB is a nationally recognized and ranked provider of bond trustee and agency services to the corporate and municipal marketplaces. UMB can meet the broad needs of bondholders, help navigate trouble spots as they occur, and help protect bondholder value. Our distressed debt team includes relationship managers and workout specialists who handle all aspects of a troubled financing and who recognize the economic implications of the deal. To learn more about our offerings, visit umb.com/corporatetrust.
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