Shane McDonald

For several decades, the Northrop Grumman Corporation manufactured aircraft for the U.S. Navy in the Town of Oyster Bay, New York. Chemical handling and disposal practices during this time resulted in trichloroethylene contamination in the Long Island Aquifer System, creating a large, approximately 150-billion-gallon plume of groundwater almost 1,000 feet deep and extending over four miles from the former manufacturing facility.

The macro-economic landscape of recent years, marked by rising interest rates and inflationary pressures, has significantly escalated borrowing costs in the European mid-market. This has prompted borrowers to explore alternative mechanisms within their credit agreements to alleviate the immediate cash burden of debt repayment. One such mechanism, that has increasingly gained traction, is the option to capitalise interest, commonly known as the “payment-in-kind” (PIK) toggle.