LatAm Loans

Faced with looming defaults in the Spanish property sector, banks are contemplating radical ideas to save companies struggling with debt. It’s going to take some bold moves — banks may find they have to stump up more cash to offer third parties and potential acquirers, or take equity stakes in some of the firms.

Sponsors of aggressively structured buy-outs might be tempted to cut their losses and run before the economic slump gets much worse. But, in many cases, it’s in private equity’s interest to play nice — and the signs so far are encouraging.

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