News & Analysis as of

Debt Restructuring Lenders Debtors

Herbert Smith Freehills Kramer

HSF Kramer Bankruptcy & Restructuring Group Global reach, local knowledge

Debtors and creditors have options when choosing where to pursue a restructuring – particularly with operations across jurisdictions and debt instruments issued under different laws. Local knowledge is key to navigate those...more

Proskauer Rose LLP

Private Credit Restructuring: Priming DIPs in Focus

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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

Proskauer Rose LLP

The Evolving New Normal 2024 Private Credit Restructuring Year in Review

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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

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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

Ropes & Gray LLP

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

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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

Seward & Kissel LLP

Atextual Behavior, Selling Retail, and Slipping on Appeal

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5th Circuit rejects Serta Simmons' controversial 2020 debt deal | Reuters - The 5th U.S. Circuit Court of Appeals ruled Tuesday that mattress maker Serta Simmons did not treat its lenders equally in a controversial 2020...more

Troutman Pepper Locke

Fifth Circuit Ruling Alters Uptier Transaction Landscape

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Overview: The Fifth Circuit’s highly anticipated decision on December 31, 2024, in the Serta Simmons case has significant implications for borrowers and lenders in financial distress situations. The issue on appeal concerned...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

Alston & Bird

Structured Finance Spectrum - Summer 2023

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Welcome to the latest edition of the Spectrum, covering hot-topic issues in the structured finance markets in the U.S. and UK. This edition features smooth sailing through safe harbors, the English Court doing the cross-class...more

Shumaker, Loop & Kendrick, LLP

Chapter 11 Trends: Are First Day Hearings “Game Over” for Chapter 11 Cases?

Material Chapter 11 cases have morphed to the point that the outcome is often predetermined at the “first day” hearing. Unsecured creditors with material credit exposure should engage early to protect their interests and...more

Shumaker, Loop & Kendrick, LLP

Live and let fly: Turbulence lands SAS in Chapter 11 - Eurofenix, Autumn 2022

On 5 July 2022, SAS AB and 13 affiliates filed for Chapter 11 protection in the Southern District of New York. Owned 44% by the Kingdoms of Denmark and Sweden, SAS encountered financial turbulence resulting from increased...more

Proskauer Rose LLP

Sunny With Clear Skies, But a Chance of Turbulence on the Horizon: Private Credit Restructuring Year in Review

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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

Shumaker, Loop & Kendrick, LLP

Chapter 11 under fire: U.S. Congress seeks to end forum shopping

Since its beginning in 1978, Chapter 11 has been the primary tool for financially distressed U.S. and foreign companies to efficiently restructure their balance sheets and business operations. Successful Chapter 11 cases...more

Opportune LLP

Bracing For Change: A Look Ahead To 2021

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What will the oil and gas landscape look like in 2021? Managing Director Gary Pittman discusses bankruptcy and restructuring trends and what we can expect heading into the new year....more

Goodwin

The Return of Crown Preference on 1 December, 2020

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The return of Crown Preference on 1 December, 2020 has widely united the restructuring community against the new measures. Whilst the rationale that the Treasury should have priority for sums received by a debtor on its...more

McDermott Will & Emery

[Webinar] Navigating the Labyrinth of the K-Trust: How to Negotiate with Korean Lenders in Loan Restructurings - December 1st,...

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Korean lenders have made a significant number of commercial real estate loans in the United States, many of which are now in default. Jin Kim of BridgeRock Capital and Brian Donnelly of McDermott Will & Emery will provide...more

Williams Mullen

Williams Mullen's Comeback Plan: Part IV - How Banks Think About Loan Defaults: Lessons for Borrowers in Troubled Times

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In the final installment of our video series aimed at helping borrowers in uncertain times, Matt Cheek, chair of Williams Mullen’s Financial Services Industry Group, and Mike Mueller, chair of our Restructuring, Bankruptcy...more

Blake, Cassels & Graydon LLP

Blakes Continuity Podcast: What to Expect When Insolvency Crosses the Border

The turbulent COVID-19 economy has put a spotlight on the complex and often delicate insolvency process on both sides of the border. Listen to partners Linc Rogers, Kelly Bourassa and Sébastien Guy on our latest podcast as...more

White & Case LLP

Restructuring the next wave of cov-lite debt

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Cov-lite loans can leave lenders with limited restructuring options, but creative lenders will still find ways to bring debtors to the table - Recent data shows that investor protection in loan documents has fallen to its...more

K&L Gates LLP

Distressed Solutions: The Ins and Outs of Receiverships

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Receiverships are an extraordinary remedy that can maximize the return to creditors by freezing assets and allowing a third party to conduct necessary litigation. John Gardner (Raleigh) and David Neu (Seattle) join host...more

Perkins Coie

In re Fagerdale USA-LOMPOC Inc.: Defensive Purchase of Claims to Avoid Cramdown Deemed Not “Bad Faith”

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A secured lender facing the prospect of having the essential provisions of its loan re-written in a Chapter 11 plan of reorganization will look for options to prevent or minimize the likelihood of such a revision. Chapter 11...more

Patterson Belknap Webb & Tyler LLP

Sears: Another Retail Giant Turning to Bankruptcy Court for Help

Started as a mail-order retailer, evolved to brick-and-mortar stores in urban areas and expanded to a big-box retailer through merger, Sears is now facing the most turbulent time in its history. On October 15, 2018, Sears...more

Patterson Belknap Webb & Tyler LLP

Toys “R” Back? Iconic Retailer in the Midst of Liquidation May be Poised for a Reboot

The failure of Toys ‘R Us to successfully reorganize in Chapter 11 sent shockwaves throughout the retail world and the restructuring community. Saddled with unsustainable debt and unable to chart a viable path forward, the...more

Baker Donelson

Claim Purchasing as a Strategy to Avoid a Cramdown

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While there are many factors that can lead a business or individual to file a chapter 11 bankruptcy petition seeking to reorganize a business, often times, particularly in a single-asset real estate case, the primary impetus...more

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