Cessation of business

In recent months, there have been numerous instances of activist investors in investment grade bonds arguing that certain (very common) default provisions relating to “cessation of business” are triggered by disposals, restructurings and/or carve-outs.  These arguments have arisen even where Issuers have carried out transactions in the ordinary course and at arm’s length (and not on a distressed basis). This blog explains what’s been happening and what steps issuers can take to understand their position and mitigate the risk of such arguments being raised in relation to their bonds.  Click here to read more.