Restructuring chaos threatens Schuldschein stability
The staid and centuries-old Schuldschein market used to be a humdrum affair, full of prudent German borrowers coupling with familiar lenders. But, with flocks of foreign lenders and borrowers entering the market, and some riskier credits with them, questions have arisen over whether the traditional deal structure is fit for purpose in racier times, write Silas Brown and Nell Mackenzie.
The legal framework that governs the Schuldschein market has organically evolved over the years and defaults have been a rare thing. That has been just as well, given a peculiarity of the market that can make corporate debt restructurings tricky.
A Schuldschein is a collection of
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