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Liability Management Exercises: Read the Fine Print

Liability management exercises (LMEs) have gained considerable attention during the past few years. Whether intended for good purposes or not, LMEs have significantly disrupted the traditional loan business through aggressive priming and subordination tactics — leading some to characterize this phenomenon as lender-on-lender violence.

9 minute read July 01, 2025 at 12:05 AM
By
Robert W. Dremluk
Liability Management Exercises: Read the Fine Print

Liability management exercises (LMEs) have gained considerable attention during the past few years. Prior to the financial crisis a borrower was prohibited under the terms of its loan agreement from purchasing its loan.

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