Politicians get into restructuring
It’s a different kind of restructuring business these days, with politicians picking up the phone to try to put their two cents in too, Moelis & Co.’s Thane Carlston said during the Reuters Restructuring Summit.
“I don’t think there have ever been more calls placed on behalf of companies by governors, senators and congressman. And it does have an impact and it’s not just in the auto industry.”
The calls are going to companies in the politicians’ districts and to the banks that have received taxpayer or government money.
“And these aren’t calls that are going unregistered,” Carlston, one of two restructuring co-heads for the boutique bank, said.
Moelis, which advises debtors and creditors on restructurings both in and out of bankruptcy court, is working on 4 or 5 deals like that, co-head William Derrough added.
“Not in all situations, but in some situations the outcome has definitely changed, whether it’s bending over backwards to accomodate a waiver or to make an amendment or to extend terms at a commercial rate, I think the outcome has changed,” Carlston said.