Liability Management’s Limited Runway

February 24, 2026, Opinion: "Coercive, non-pro rata debt restructurings—now widely labeled “liability management exercises” (LMEs), just like their pro rata siblings—have become a central tool for distressed borrowers. Proponents of the non-pro rata restructuring often argue that it gives the company time to turn around and take off, reduce financial distress, and typically avoid bankruptcy."