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The article focuses on the debt crisis in Europe with a focus on its effects for restructuring lawyers. Topics include the increase in insolvency and restructuring due to business failures, the economic predictions of the Standard & Poor's (S&P) financial services company for debt and refinancing of European businesses, and the advantages of the economic crisis for restructuring lawyers.

The article focuses on the growing demand for covenant-lite financing deals or bond-loan deals in the European market. With the strong demand in private equity funds and for financing institutions to provide such funds, the reluctant banking sector is expected to provide covenant-lite financing. However, as continued demand is uncertain, bankers and private equity sponsors are facing high risked in covenant-lite deals.

The article reports on the implications of growth in private equity investments and cash flow on the prevalence of leveraged buyouts. The emergence of Middle Eastern money into the European private equity market, increased interest for hedge funds has intensified competition and generated even more auction processes. Other implications include structural subordination and the urging of lenders to accommodate equity interests such as preferred equity certificates and sub-debt.