Pilipino Telephone

The $850m (£602.9m) restructuring of Pilipino Telephone Corporation (Piltel) is the Philippines' largest corporate debt restructuring. Linklaters & Alliance was recommended to Piltel by Lehman Brothers. Allen & Overy was originally brought in to act for the consortium of Filipino banks, but it ended up advising the bondholders' trustee JP Morgan Chase & Co as well.`The deal was drafted with three chunks of debt. More than 40 international and domestic banks provided $290m (£205.7m), international and convertible bondholders held $235m (£166.7m) of bonds and there was a $273 (£193.6m) assets-for-debt-and-equity swap with Marubeni.`Given that there were no UK law documents and the entire deal was structured under US and Filipino law, the restructuring was a coup for Linklaters and Allen & Overy. The deal took place over two years during which there was a change in government, a change in insolvency laws, a major drop in the Philippines currency and the bursting of the global telecoms bubble.