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Cooperation Agreements Help Distressed Lenders Negotiate as One

Cooperation agreements are a new tool for distressed debtholders seeking to negotiate from a position of unity and strength. These agreements can also help debtholders defend themselves against a growing opportunistic...more

The Double Dip: Guacamole Faux Pas ‎or Liability Management ‎Technique?

Jerry Seinfeld and Larry David taught us that you can’t double dip a chip—“it’s like putting your whole mouth right in the dip.” However, the credit markets have recently been focused on a different type of double dip, one...more

1/3/2024  /  Borrowers , Creditors , Debtors , Insolvency , Lenders

Saving Our Small Businesses – Considerations for Lenders upon the Default or Bankruptcy of a Paycheck Protection Program Borrower

With the goal of providing financial relief to companies impacted by the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) amended the Small Business Act to allow the Small Business...more

Not Cool, Dude: Surf and Skate Company Primes Lenders with “Uptiering” Transaction

On October 9, 2020, a group of first lien lenders filed a lawsuit in the New York Supreme Court against Boardriders, Inc., a California-based surfing and skateboarding apparel company and its equity sponsor, challenging a...more

10/29/2020  /  Borrowers , Debt , Lenders , Loans

Enter Sandman: Serta Sends Senior Lenders Off to Never-Never Land

Serta Simmons Bedding, LLC (“Serta”) offers one of the latest examples of a creative borrower utilizing flexibility in its credit agreement terms to access new liquidity at the expense of its existing senior lenders. Serta is...more

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