In most chapter 11 cases, existing first lien lenders provide post-petition financing to preserve collateral value and maximize recovery. In some situations, a stressed borrower may threaten to pursue a hostile chapter 11...more
3/24/2025
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Collateral ,
Creditors ,
Debt ,
Debt Restructuring ,
Debtors ,
Debtors-in-Possession ,
Lenders ,
Loans ,
Restructuring
NEW YORK, October 23, 2024 – Leading international law firm Proskauer today revealed the results of its Q3 2024 Private Credit Default Index (“Default Index” or the “Index”), with an overall default rate of 1.95%. The Q3...more
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
NEW YORK, April 23, 2024 – Leading international law firm Proskauer today announced a 1.84% overall default rate for Q1 2024 for loans in its Private Credit Default Index (the “Index”). The Index tracks senior-secured and...more
Once again, we reflect on the prior year for restructuring trends impacting private credit lenders. Last year it was all about “liability management”—the latest trend in which the limits of sponsor-favorable loan documents...more
1/18/2023
/ Bankruptcy Court ,
Capital Raising ,
Chapter 11 ,
Coronavirus/COVID-19 ,
Delaware ,
Interest Rates ,
Lenders ,
Liquidity ,
Loans ,
Motion to Dismiss ,
NY Supreme Court ,
Restructuring ,
Supply Chain ,
Supply Shortages ,
Ukraine ,
Vaccinations
A common yet contentious liability management strategy is an “uptier” transaction, where lenders holding a majority of loans or notes under a financing agreement seek to elevate or “roll-up” the priority of their debt above...more
It seems inevitable there will be an uptick in private credit defaults as economic conditions further deteriorate. What steps are you taking in terms of portfolio management to prepare for the next cycle with respect to...more
10/18/2022
/ Article 9 ,
Budgets ,
Change of Control ,
Chapter 11 ,
D&O Insurance ,
Debt Restructuring ,
Equity Transactions ,
Exclusions ,
Foreclosure ,
Insolvency ,
Lenders ,
Loans ,
Securities and Exchange Commission (SEC)
The primary investment thesis of a private credit lender is simple — get the loan repaid at maturity. Private credit lenders do not make loans as a means to acquire their borrower’s business. There are circumstances, however,...more
8/30/2021
/ 363 Sales ,
Article 9 ,
Bankruptcy Plans ,
Borrowers ,
Collateral ,
Credit Bids ,
Debt Collection ,
Debt Forgiveness ,
Debt Restructuring ,
Lenders ,
Loans