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Article: Debt buybacks debate rages on as LMA creates room for negotiation.
- Article from:
- The Lawyer
- Article date:
- June 9, 2008
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US AND magic circle partners are continuing to debate the issue of debt buybacks as the Loan Market Association (LMA) prepares to amend its documentation.
The LMA said it will amend its primary facility agreements to provide options for the lender and borrower to negotiate whether debt buybacks should be permitted.
The association says buybacks should adhere to the principle of treating all lenders equally, rather than selecting particular lending banks for a transaction.
Kirkland & Ellis finance partner Stephen Gillespie said: "I don't follow the LMA's statement that it's a fundamental principle of syndicated lending that all lenders be treated equally by ...