5 Discuss the reasons why the borrower
may have chosen to enter into a new loan
agreement, rather than raise capital via
an equity issue.
6 The borrower intends to use some of
the proceeds of the loan to repurchase
some of the company’s ordinary shares,
preferred shares and warrants. What
are the factors that the borrower should
consider when making these repurchase
decisions? What are the likely effects of
this on capital structure and gearing?RESTRUCTURING FINANCES TO END LITIGATION