Companies Draw Down on Revolvers While They CanMarch 25, 2020 – Media Mention
With the coronavirus pandemic upsetting typical business operations and shuttering scores of businesses at least temporarily, companies across sectors are cutting expenditures and drawing down on their revolving credit facilities to add cash to their balance sheets. In many cases, companies are borrowing all available funds under the credit lines.
Drawing down on revolvers is typical for distressed companies ahead of a restructuring, but a different dynamic is in play now. Bankruptcy Partner Brian Davidoff provides his insights to The Deal.
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