Beyond Traditional LMEs: Creative Document Exploitation

The panel explores how borrowers and sponsors are achieving non-pro rata outcomes through mechanisms that fall outside the traditional LME label, including distress disposals, asset sales, and standard documentary baskets. The discussion highlights that these 'stealth' techniques — including aggressive A&E packages, PIK toggles, and EBITDA add-backs — can mask credit deterioration and go undetected by standard LME monitoring frameworks.