Exit Consents: What´s Exit Consent?

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for example, obtaining an “exit consent” with those bondholders who agree to sell their bonds as this may, in certain circumstances, be found to be an abuse of power of the majority bondholders. Thought should also be given to the timing and mechanics of voting on such amendments to ensure that the actual vote by the exiting bondholders to change the terms of the bonds does not take place after they have been effectively disenfranchised by the issuer’s earlier acceptance of their offer to sell their bonds. Exit consents may still be used as a restructuring tool, provided that they are used in a way that is not unacceptably coercive of the minority and it is important for the issuer to delay its acceptance of the bondholders’ offer to sell

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