A.D.I.: setting up the right organization for bond investors
Bond investors act as banks would do, as financial creditors of borrowing companies. However, unlike a syndicate of banks, bondholders are widely dispersed, which creates a true difficulty to identify creditors and hinders the organization of bondholders to address collectively potential issues raised over time.
Therefore, one of A.D.I. main purposes is to gather, within A.D.I. Committees, its Members holding similar bonds. A single counterparty is thus created vis-à-vis the issuer, which is particularly useful when the latter is facing different evolutions of its bond issue:
- modification request of certain terms of the bonds
- breach of covenant
- payment default
- rescheduling request
- negotiations to be held under a Chapter 11 type procedure…
A.D.I.: influence the environment and the standards of bonds issuing
A.D.I. pools the knowledge, experience and means of its Members in order to:
- prepare recommendations to European Union lawmakers and financial markets regulators regarding the evolution of laws and regulations related to bond debt,
- define standards which should apply to bond issues.