News & Analysis as of

Bankruptcy Code Debtors Lenders

Kerr Russell

Restructuring and Insolvency Options for Distressed Businesses in Uncertain Times

Kerr Russell on

Tariffs to the left of me, uncertainty to the right. To paraphrase the 1970’s rock song, an owner of a distressed business must feel stuck in the middle in a world of shifting governmental policies and an ever-changing...more

Jones Day

Business Restructuring Review Vol. 24, No. 4 | July–August 2025

Jones Day on

The Ad Hoc Group of Senior Secured Noteholders and DIP Lenders (the “Ad Hoc Group”) obtained a unanimous judgment in their favor in an appeal following Sanchez Energy Company’s long-running, hard-fought bankruptcy case. Once...more

Seward & Kissel LLP

Mayday, Mav’s in Trouble and Missing Linq

Seward & Kissel LLP on

Maverick Gaming, which owns 5 Nevada casinos, files for bankruptcy | The Nevada Independent - The Washington-based casino and card-room operator filed for Chapter 11 bankruptcy in the Southern District of Texas on Monday....more

Eversheds Sutherland (US) LLP

When “preserving value” isn’t enough: what Broadway Realty teaches about lender rights in bankruptcy

A recent decision from the US Bankruptcy Court for the Southern District of New York has drawn a sharp line for real estate owners seeking to use lender cash in bankruptcy.1 In denying Broadway Realty’s motion to access...more

Offit Kurman

Acquisition Strategies: Navigating Section 363 Sales and the Impact of Undersecured Liens

Offit Kurman on

Section 363 of the Bankruptcy Code allows a Chapter 11 debtor to sell assets "free and clear" of existing claims, liens, encumbrances, and other liabilities. This provision facilitates expedited sales that might otherwise be...more

Jones Day

Chapter 11 Filing Without Consent of Independent Director Dismissed as Unauthorized

Jones Day on

Courts disagree over whether provisions in a borrower's organizational documents or loan agreements designed to restrict or prevent the borrower from filing for bankruptcy are enforceable as a matter of federal public policy...more

Nelson Mullins Riley & Scarborough LLP

Make-Whole Premiums in Bankruptcy: Clarity in Drafting, Certainty in Recovery

In the world of commercial lending, certain contract provisions often go unnoticed—until the moment they matter most. Make-whole premiums are one such example. Typically tucked deep in loan agreements, these provisions are...more

Morris James LLP

Proactive Steps for Creditors Facing a Customer’s Bankruptcy: Key Takeaways from ALFA International 2025

Morris James LLP on

When a customer or business partner files for bankruptcy, creditors often feel uncertain about their rights and financial exposure. At the ALFA International 2025 International Client Seminar, I had the opportunity to speak...more

Proskauer Rose LLP

Private Credit Restructuring: Priming DIPs in Focus

Proskauer Rose LLP on

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

Kilpatrick

When Provisions in a Loan and LLC Agreements Do Not Impermissibly Restrict a Bankruptcy Filing

Kilpatrick on

In In re 301 W North Avenue, LLC, 2025 WL 37897 (Bankr. N.D. Ill. 2025), a bankruptcy court recently addressed provisions in a loan agreement and limited liability company (“LLC”) operating agreement as to their effect on...more

Proskauer Rose LLP

The Evolving New Normal 2024 Private Credit Restructuring Year in Review

Proskauer Rose LLP on

In many ways, 2024 continued existing trends in private credit: modest levels of M&A activity, competition among direct lenders to deploy capital, higher-for-longer interest rates, persistent inflation, elevated default...more

Seward & Kissel LLP

Fifth Circuit Reverses Bankruptcy Court’s Ruling on Lenders’ Sacred Right of Pro Rata Repayment in Uptiering Transaction

Seward & Kissel LLP on

On December 31, 2024, the Fifth Circuit Court of Appeals overturned the Bankruptcy Court for the Southern District of Texas’ (the “Bankruptcy Court”) decision that the exchange by certain lenders of Serta Simmons Bedding, LLC...more

DLA Piper

Fifth Circuit Rules that Serta Simmons Bedding, LLC’s 2020 Uptier Transaction Violated Pro Rata Distribution Covenant

DLA Piper on

In a landmark ruling, the US Court of Appeals for the Fifth Circuit ruled that a June 2020 refinancing transaction (the Uptier Transaction) entered by Serta Simmons Bedding, LLC (SSB, or the Debtor) and certain of its lenders...more

Troutman Pepper Locke

What Are First-Day Motions and the First-Day Hearing, and Why Should I Care? - Creditor’s Rights Toolkit

Troutman Pepper Locke on

Once a company files for Chapter 11 bankruptcy, it must sort through a myriad of potential issues and transition into operating as a business subject to the Bankruptcy Code. Through various “First-Day Motions,” a debtor will...more

Akin Gump Strauss Hauer & Feld LLP

Serta - Fifth Circuit Decision

On December 31, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its long-awaited decision regarding the permissibility of the Serta Simmons Bedding (Serta) uptier liability management exercise (the 2020 Uptier)...more

Ropes & Gray LLP

Law Reviews, Dictionaries, and Uptiers: The Fifth Circuit Weighs In on Serta

Ropes & Gray LLP on

Market participants might be wary of opinions that begin with a recitation of academic literature and then turn to dictionaries. The former tend to be authored with an eye toward systemic change rather than direct experience...more

Proskauer Rose LLP

What Being An 'Insider' Means In Ch. 11, And Why It Matters

Proskauer Rose LLP on

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

Mayer Brown

How the Automatic Stay in Bankruptcy Can Affect Net Asset Value Facilities

Mayer Brown on

Executive Summary - In net asset value (NAV) facilities, the borrowing capacity typically adjusts to reflect changes to the value of the underlying investment portfolio, and borrowers face the risk of potential borrowing...more

Troutman Pepper Locke

The Debtor (or Its Successor) Has Objected to My Claim – What Do I Need to Do? - Creditor’s Rights Toolkit

Troutman Pepper Locke on

Often, after filing a proof of claim, a creditor can go months or even years, without hearing anything regarding their claim. Then, unexpectedly, the creditor's proof of claim faces an objection, possibly on multiple grounds,...more

Buckingham, Doolittle & Burroughs, LLC

Business Bankruptcy Alternatives

In the middle market, businesses are feeling the financial crunch. Pandemic-era governmental incentives are ending, interest rates are on the rise, and consumer demand for some products is waning. These factors have led to...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Critical Vendor in Texas: It’s a Rodeo

In Chapter 11 cases, one of a vendor’s best shots at getting paid its pre-petition debt is being designated as a “critical vendor”....more

King & Spalding

Bankruptcy Court Finds Lender’s Fee Application, Seeking Double the Debtor’s Fees, Reasonable

King & Spalding on

On January 3, 2024, the U.S. Bankruptcy Court for the Western District of Texas issued an order approving, in substantial part, a contested fee application submitted by 100 E. 7th Street Lender LLC, an oversecured lender to...more

King & Spalding

The Seventh Circuit Upholds District Court’s Decision That Safe Harbor Provision of Section 546(e) Applies to Privately Held...

King & Spalding on

A recent ruling from the United States Court of Appeals for the Seventh Circuit provides additional comfort for lenders receiving full repayment in connection with leveraged acquisitions. The U.S. Bankruptcy Code gives...more

Troutman Pepper Locke

Idaho Bankruptcy Court Holds that Later-Recovered Assets Revert to Borrower Absent Plan Provision to the Contrary

Troutman Pepper Locke on

What happens to funds recovered by the trustee after the final plan payment is made in a chapter 13 case? According to the U.S. Bankruptcy Court for the District of Iowa, absent a plan provision providing otherwise, those...more

Jones Day

Cure and Reinstatement of Defaulted Loan Under Chapter 11 Plan Requires Payment of Default-Rate Interest

Jones Day on

Section 1124(2) of the Bankruptcy Code gives chapter 11 debtors a valuable tool for use in situations where long-term prepetition debt carries a significantly lower interest rate than the rates available at the time of...more

57 Results
 / 
View per page
Page: of 3

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide