Although the availability of fibre-optic connections has exceeded 50 %, the profitability of the business model remains, for many operators, well below the assumptions set out in their business plans. The crisis in the fibre-optic sector is not due to a single cause, but the result of several mutually reinforcing factors.
Integrated operational and legal restructuring
The fact that fibre-optic cases are now landing on the desks of both banks and lawyers simultaneously is no coincidence, but rather the hallmark of these restructurings: they are always both a balance sheet event and a legal event. Capital structures verging on over-indebtedness, subordination agreements and the threat of write-downs – right up to the valuation of equity at zero – raise the question of recapitalisation and a new financing architecture – whilst directors’ duties, creditor majorities, funding conditions and regulatory requirements define the legal framework within which any solution must be viable.
Thus, a solution that is purely financial, purely operational or purely legal falls significantly short. Against this backdrop, Dr Maximilian Eberl and Carl Schoenaich-Carolath, together with Dr Ulrich Klockenbrink and Dr Hendrik Hauke of Willkie Farr & Gallagher, analyse the transition in the fibre-optic market from operational and legal perspectives in a joint white paper.
What’s inside?
>> To the white paper on Germany's fibre-optic market. <<
Dr Maximilian Eberl is a Partner at Haselhorst Associates. His work focuses on complex restructuring and transformation mandates, in which he acts as Chief Restructuring Officer – both in an advisory capacity and, where necessary, as a managing director appointed by the board with full decision-making and profit-and-loss responsibility.
Carl Schoenaich-Carolath is an Associate Partner at Haselhorst Associates and has been working with companies undergoing restructuring for ten years. His work focuses on the operational restructuring and reorganisation of holistic turnarounds, for which he is responsible both in an advisory capacity and in terms of implementation – whether as part of CRO & Team mandates or in the role of COO.
Dr Ulrich Klockenbrink is a Partner in the restructuring practice at Willkie Farr & Gallagher and co-chair of the German restructuring group (Hamburg office). With around 15 years of experience, he advises investors, companies, lenders and banking consortia, steering committees, insolvency practitioners and companies in complex restructuring, distressed M&A and enforcement situations – both in and out of court.
Dr Hendrik Hauke is a Partner in the restructuring practice at Willkie Farr & Gallagher (Hamburg office). With nearly 15 years of experience, he advises investors, companies, lenders and banking consortia, steering committees, insolvency practitioners and companies in complex and international restructuring, distressed M&A and enforcement situations – both in and out of court.
