Latest News from TMA (UK)
29 March 2010 | Are banks building up a deadly portfolio of underperforming loans?
What is happening?
Over the last year or so many of you may have heard the phrase "extend and pretend" countless times. This is a situation where lender(s) agree to extend maturities and /or amend covenants on a debt instrument to a borrower to avoid an event of default occurring in the (vain?) hope that:
- the operating performance of the company will return to health, or
- the market will once again be prepared to refinance deals on high leverage multiples.