Bausch Health: A Restructuring Story Still Unfolding

Welcome to the 150th Pari Passu newsletter.

It seemed like yesterday that we published our Pluralsight Deep Dive as the 100th Pari Passu edition, and here we are at the next milestone. I am incredibly grateful to you for reading. I intend to publish forever and keep improving. In this spirit, if you have any feedback, reply to this email as I would love to hear it.

Today, we are going to be diving into the ongoing story of Bausch Health. This represents one of the most fascinating stories in the pharmaceutical industry. Known as the “Pharmaceutical Enron”, Bausch Health has had to overcome years of litigation, and in doing so has developed a complex and intertwined capital structure. 

Over the past three years, the company has engaged in two large-scale out-of-court restructurings. Will it be headed for its third? This is the question that we will explore in today’s (very complex) analysis of this fascinating company.

The restructuring landscape shifted notably in H2 2025, with distressed companies increasingly deploying LMEs that prioritize certain creditor classes over others.

Are we witnessing a permanent return to contentious restructuring strategies? What forms are these "violent" approaches taking? Find out at 9fin's exclusive breakfast in NYC.

Our expert panel will analyze the confluence of factors driving this evolution — shifting interest rate environments, evolving macroeconomic conditions, and changing risk appetites among sponsors and creditors.

Speakers

• Barak Klein (Moelis)

• Justin Lee (Weil)

• Alexander Tracy (Perella Weinberg)

• Jay Weinberger (Houlihan Lokey)

• Austin Witt (Kirkland & Ellis)

• Scott Greenberg (Gibson Dunn)

• Jane Komsky (9fin)

Space is limited for this senior-level discussion. This event is exclusively for market practitioners.

Section Preview

• Company History

• Financial Overview

• Causes of Distress

• The 2022 Restructuring

  • The B+L Spinoff/IPO

  • The issuance of debt at B+L

  • BHC’s exchange transaction and dropdown of an equity stake in B+L

• The 2025 Restructuring

  • Capital Raises and Repurchases

  • The SpinCo Transaction

• Where do we go from here?

• Conclusion

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