Companies Are Buying Back Their Own Debt at Deep Discounts
The line between smart financial management and a ‘distressed exchange’ can be narrow
The building housing the headquarters of Samhallsbyggnadsbolaget i Norden AB (SBB) in Stockholm, Sweden, on Friday, May 12, 2023.
Photographer: Andrey Rudakov/BloombergWelcome to The Brink. It’s Irene García Pérez and Giulia Morpurgo in London, where we’re looking at the growth of distressed debt exchanges in Europe. We also have an update on the crisis at Rene Benko’s Signa, and a last-ditch compromise China Evergrande is seeking with creditors. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net or DM on X to @irenegperez.
More and more companies are grabbing the chance to buy back their own debt at a deep discount this year. As tempting as this may be, the weaker ones need to be careful they don’t end up being declared a defaulter.