Global Liability Management Quarterly: Rise of ‘Disqualified Counsel’ Language Is New Front in LME; Potential QVC ‘Aggressive’ LME; Lecta Works on Drop-Downs; Victoria Exchange Offer Post-Uptiering; China’s Logan Group Forces Deeper Equitization

Americas Credit Research: Jared Muroff, CFA; Simran Bal Americas Legal Research: Julian Bulaon Americas Reporting: Michael Haley EMEA Credit Research: Cedrick Cassin, Charlie Ward EMEA Reporting: Connor Lovell Asia Credit Research: Junguang Tan In our third-quarter 2025 global quarterly report highlighting our work on liability management exercises, or LMEs, used by stressed creditors to partially refinance capital structures, Octus discusses the rise of disqualified counsel language in leveraged finance documents, the potential for an LME at QVC Group, Lecta’s plan to move its most productive subsidiaries to unrestricted subs, Victoria’s voluntary exchange offer and Logan Group’s September 2025 amendments that force a deeper level of equitization on creditors. This report summarizes the latest trends in liability management, including “aggressive” transactions completed or contemplated by U.S., European and Asian borrowers during the third quarter that, among other things, raise cash, extend maturities or reduce outstanding principal, and sometimes all three. The report concludes with a table summarizing select aggressive U.S. LME transactions covered by Octus during the quarter, which are also now available on Credit Cloud HERE. To date, aggressive LMEs involving, for example, uptiering and drop-downs have been more common in the U.S. market and were relatively limited in the[...]