800-357-8247
Logo

Credit Enhancement

October 14, 2015 4:14 pm Published by Comments Off on Credit Enhancement

The issuance of a guarantee to reinforce the credit strength of a project financing.

The process of reducing credit risk by requiring additional guarantees or collateral to provide the lender with reassurance that it will be compensated if the borrower defaulted.

Credit Enhancement is a key function of Capital Underwriters Fund. Although debt can be restructured over the objection of a secured creditor (known as a cramdown) lenders who are pulled in to a chapter 11 filing can have their objections mitigated by way of credit enhancement.

Capital Underwriters Fund provides a credit enhancement platform for projects in chapter 11 co-signing guarantees with the property owner or providing additional collateral in the form of a Letter of Credit if it determines that the credit enhancement benefits the project economics.


Categorised in:

This post was written by restructuringexperts

Comments are closed here.





Refinancing, discounting and restructuring Ch-11 debt is our business & we’ve been doing it in Ch-11 reorganizations nationwide for 25 years. Call us. We have the resources, the knowledge, the influence with the banks and the capital you need. We are the solution. We guarantee it