Mar
21
Credit Default Swaps Make Restructuring More Difficult
BySeveral years ago I wrote an article predicting that the growth of credit default swaps would make it increasingly difficult to restructure distressed companies. The drama surrounding a Norwegian paper maker shows that, if anything, I understated the potential problem.
Norske Skog, which describes itself as multinational “manufacturers of lightweight, coated and uncoated newsprint and magazine paper,” is in the midst of an exchange offer. In that respect, it is like many other companies, although Norske Skog is the rare one that is not in the oil and gas sector…
Credit Default Swaps Make Restructuring More Difficult
