revolver: TSL GUEST COLUMN

During the last few economic cycles, it became commonplace to have an adversarial, yet productive, relationship between a distressed borrower and its lender(s). But, in the end, the needs of both parties were often met. The borrowers were provided with a window of time to achieve a more desired outcome, while the lenders typically remained supportive in order to provide the borrower the time required to transition to a new lending relationship or otherwise exit a situation at a higher recovery than in a bankruptcy/liquidation situation. These paradigms changed dramatically during the upswing portion of this most recent cycle. The growth in the hedge fund and private equity communities provided easy access to capital for troubled businesses.