Benesch Partner Seth Kleinman, Vice-Chair of the firm’s Restructuring & Bankruptcy Practice Group, was quoted in the recent Bloomberg Law article titled “Private Lender Moves Risk Extend-and-Pretend Path to Bankruptcy.”
In the piece, Bloomberg Law highlights the growing trend in the private credit market where lenders are extending maturities—despite underlying financial distress—in hopes of avoiding full-blown restructurings. Kleinman cautioned that some of these extensions may merely delay the inevitable.
“Of the debt coming due soon or in the near to medium term, there’s a lot of reluctance in the marketplace from lenders to enter a real messy restructuring unless they absolutely have to,” said Seth Kleinman.
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