FICC Focus State of Distressed Debt: Moelis’ Murray on Private Credit Workouts
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Mar 7, 2026 Rachel Murray, Managing Director at Moelis & Co., advises on capital structure and turnarounds. She discusses how private credit’s relationship-driven dynamics change restructurings. Short conversations cover tactics to create lender competition, non-pro rata economics, dual-tracking between private and syndicated markets, lender heterogeneity, and trade-offs from looser documents and lender control.
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Dual Track BSL And Private Markets To Improve Terms
- Create competition between private credit and BSL channels to improve pricing and document flexibility for borrowers.
- Murray recommends dual tracking both markets and keeping alternatives to increase negotiating leverage and drive better terms.
LMEs Fail When Plans And Documents Misalign With Reality
- Successful out-of-court restructurings require realistic goal setting and a business plan that supports long-term viability.
- Murray warns overly tight documents or quarter-to-quarter fixes can leave a company unable to solve problems and risk later Chapter 11.
Insist On Sustainability Not Quarter To Quarter Fixes
- Push lenders for sustainable solutions that support reinvestment in the business rather than just lowering near-term debt.
- Murray and panelists recommend keeping credible alternatives to force better terms and avoid crippling cash-interest or coupon bumps.