The economic impact of the Covid-19 pandemic has been severe and far-reaching. We are seeing otherwise viable companies forced to restructure liabilities and business structures to try and salvage ongoing trading and keep ahead of the dark cloud of insolvency. It is no surprise that we have seen a rise in corporate restructurings and re-financings, particularly in the travel industry.
In spring 2020, Conyers provided Bermuda law advice in connection with three major deals involving some of the largest cruise companies in the industry. Conyers advised L Catterton, a global PE firm, on a $400m investment in Norwegian Cruise Line Holdings Limited. This cash injection was part of a major refinancing allowing Norwegian to survive the effects of the pandemic on its operations. Viking Cruises Ltd has also been battered by the stormy seas of Covid-19. Conyers advised Viking on a refinancing that will allow the company to repay existing debts and continue trading. Finally, Conyers advised Carnival Corporation in connection with a significant financing of $6bn.
Bermuda has a reputation for being a world-class international finance centre. The island has a flexible, English-based legal system, backed by a reputable regulator, and it is tax neutral. These attributes create a business friendly environment allowing companies to access high quality capital, while protecting investor and creditor rights. There continues to be a growing number of investment opportunities available to international investors capitalising on low interest rates, currency fluctuations and, especially now, distressed assets.
This article was originally published in The Lawyer.