Lenders are ramping up bankruptcy protection measures as they position for further distress in the wake of high-profile implosions, according to an analysis of credit documents conducted by an artificial intelligence model.
The vast majority of deals now require all creditors to sign off before giving any new lenders priority in a potential recovery, according to Noetica, a startup software platform that used AI to analyze more than one billion deal terms this year. In exchange, borrowers are getting more flexibility with earnings adjustments.
The trade-offs come as credit investors turn
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