The appointment of an independent director is a powerful tool for private credit lenders. The appointment is designed to introduce a voice of neutrality and fairness into the board’s decision-making process with the hope and...more
2/28/2025
/ Bankruptcy Court ,
Board of Directors ,
Commercial Bankruptcy ,
Contract Terms ,
Corporate Governance ,
Corporate Restructuring ,
Creditors ,
Debt Restructuring ,
Fiduciary Duty ,
Lenders ,
Limited Liability Company (LLC)
The United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) ruled on December 31, 2024 that Serta Simmons Bedding’s (“SSB”) 2020 uptier exchange included a transaction that, contrary to the assertions of...more
1/3/2025
/ Appellate Courts ,
Bankruptcy Court ,
Borrowers ,
Commercial Bankruptcy ,
Credit Agreements ,
Declaratory Judgments ,
Lenders ,
Liens ,
Liquidity ,
Loan Agreements ,
Loan Repayment Issues ,
Motion to Dismiss ,
Texas
After nearly a decade of historically low interest rates, many borrowers will now have to grapple with near-term maturities between 2025 and 2028 on approximately $4.9 trillion of corporate debt.
While some borrowers may...more
10/22/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Business Operations ,
Chapter 11 ,
Commercial Bankruptcy ,
Compliance ,
Concession Agreements ,
Debtors ,
Equitable Subordination ,
Fraudulent Transfers ,
Interest Rates ,
Lenders ,
Negotiations ,
Restructuring
One common denominator links nearly all stressed businesses: tight liquidity. After the liquidity hole is identified and sized, the discussion inevitably turns to the question of who will fund the necessary capital to extend...more
10/15/2024
/ Borrowers ,
Capital Raising ,
Chapter 11 ,
Commercial Bankruptcy ,
Credit ,
Creditors ,
Enforcement ,
Equity ,
Liquidity ,
Loan Syndication and Trading Association (LSTA) ,
Loans ,
Reorganizations ,
Restructuring ,
Shareholders
In a much-anticipated decision, the United States Court of Appeals for the Third Circuit recently held that unsecured noteholders’ claims against a debtor for certain “Applicable Premiums” were the “economic equivalent” to...more
As you know from our prior alerts, creditors of borrowers formed as Delaware LLCs (as opposed to corporations) lack standing under Delaware law to sue directors for breaching fiduciary duties even when, to the surprise of...more
4/26/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Breach of Duty ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
DE Supreme Court ,
Delaware ,
Derivatives ,
Fiduciary Duty ,
Fraudulent Transfers ,
Limited Liability Company (LLC) ,
Standing
There is a growing trend of bankruptcy courts approving structured dismissals of chapter 11 cases following a successful sale of a debtor’s assets under section 363 of the Bankruptcy Code. A structured dismissal is a...more
Recently, two significant distressed companies with thousands of commercial leases, Rite Aid Corp. and WeWork Inc., each filed Chapter 11 bankruptcy cases, seeking in part to rationalize their geographic footprints through...more
1/11/2024
/ Bankruptcy Appellate Panel (BAP) ,
Bankruptcy Code ,
Chapter 11 ,
Commercial Bankruptcy ,
Commercial Leases ,
Commercial Tenants ,
Debtors ,
Jurisdiction ,
Popular ,
Property Surrender ,
Rent ,
Rent Increases ,
Security Deposits ,
Standby Letters of Credit ,
Tenants ,
Unsecured Debt
This past year was marked by extraordinary deal activity. Record breaking M&A activity drove record breaking private credit activity. Private equity M&A activity was at a substantial high, with over 8,500 deals worth $2.1...more
2/8/2022
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Creditors ,
Debt Restructuring ,
Debtors ,
First-Lien ,
Insolvency ,
Lenders ,
Make-Whole Premium ,
Purdue Pharma ,
Reorganizations
Despite the Supreme Court’s rejection of a structured dismissal in 2017, there is a growing trend of bankruptcy courts approving structured dismissals of chapter 11 cases following a successful sale of a debtor’s assets under...more
In its 2019 decision in Mission Product Holdings Inc. v. Tempnology LLC, the U.S. Supreme Court resolved a circuit split concerning the effect of contract rejection under Section 365 of the Bankruptcy Code. More specifically,...more
As we prepare for the next restructuring cycle, the US private credit industry is becoming more intrigued with ultra-fast bankruptcy cases. These chapter 11 cases grab headlines and last less than a day. Specifically,...more