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
1/29/2025
/ Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Corporate Restructuring ,
Creditors ,
Debt Restructuring ,
Debtors ,
Lenders ,
Liability ,
Popular ,
Private Equity ,
Reorganizations
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
When leveraged buyouts (“LBOs”) fail, the selling shareholders are litigation targets. A common suit is a claim by a bankruptcy trustee asserting constructive fraudulent transfer claims seeking to claw-back payments to the...more
While global inflation and higher-for-longer interest rates dominated macroeconomic headlines over the last year, middle-market private credit restructurings witnessed three notable trends.
First, these credits remained...more
1/26/2024
/ Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Debt ,
Debt Restructuring ,
Divestiture ,
High-Yield Markets ,
Interest Rates ,
Lenders ,
Middle Market ,
Motion to Dismiss ,
Price Inflation
Navigating the Bankruptcy Code can present many traps for unsuspecting debtors, creditors or asset buyers. The U.S. District Court for the District of Delaware recently reminded bankruptcy participants of an often overlooked...more
Navigating the Bankruptcy Code can present many traps for unsuspecting debtors, creditors, or asset buyers. The Delaware District Court recently reminded bankruptcy participants of an often overlooked pitfall involving the...more
12/1/2023
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Collective Bargaining Agreements (CBA) ,
Creditors ,
Debtors ,
Delaware ,
Free and Clear Transactions ,
NLRA ,
NLRB ,
Non-Discrimination Rules ,
Successor Liability ,
Successors ,
Unions ,
United Steelworkers
When debt restructuring discussions are at an impasse and the reservoir of goodwill between the parties has run dry, stakeholders face difficult choices. For a lender, one of the most powerful tools available is the exercise...more
8/4/2023
/ Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Borrowers ,
Debt Restructuring ,
Equity ,
Lenders ,
Notice Requirements ,
Parent Corporation ,
Proxy Voting ,
Shareholders ,
Voting Rights ,
Written Consent
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