Debt capitalisation in court-approved refinancing agreements and in the composition with creditors: the availability of cramdown

Debt for equity swaps are also envisaged by said 4th a.p. as possible content of refinancing agreements. However, unlike what happens with the other measures envisaged by the IA, strictly speaking they cannot be said to have an effect that can be «extended» regardless of consent to dissenting financial creditors (cramdown effect). Indeed, the IA clarifies that this type of creditors that have not signed the refinancing agreement or have expressed disagreement with the same may «choose between a debt for equity swap or a forgiveness of debt equal to the sum of the nominal value of shares that they would subscribe to or take up and, where appropriate, of the share premium.» To which is added that debt forgiveness will be deemed chosen in the absence of explicit indication from the creditor…