The growth in private credit (lending by institutions other than banks) has been one of the most significant capital market developments of the last decade. It is estimated that the size of the private credit market was...more
8/13/2024
/ Capital Markets ,
Change of Control ,
Debt Market ,
Debt Restructuring ,
Financial Distress ,
Intellectual Property Protection ,
Investment ,
Investors ,
Lenders ,
Non-Bank Lenders ,
Private Equity ,
Underwriting
In In re Gol Linhas Aéreas Inteligentes S.A. Judge Martin Glenn recently held that a “lockup” provision in certain settlement agreements was unenforceable under section 1125 of the Bankruptcy Code because settling creditors...more
A bankruptcy sale is an opportunity to potentially acquire assets at distressed pricing. A bankruptcy sale also presents prospective bidders with a level playing field to conduct due diligence, submit a bid, and compete...more
5/22/2024
/ 363 Sales ,
Acquisitions ,
Assignments ,
Assumption of the Risk ,
Auction ,
Bankruptcy Code ,
Bids ,
Business Assets ,
Commercial Bankruptcy ,
Competitive Bidding ,
Debtors ,
Executory Contracts ,
Regulatory Requirements ,
Sale of Assets ,
Section 363
On August 24, 2023, the U.S. Court of Appeals for the Second Circuit in Kirschner unanimously held that notes evidencing syndicated loans do not plausibly qualify as “securities” covered by state and federal securities laws...more
9/11/2023
/ Borrowers ,
Breach of Duty ,
Chapter 11 ,
Commercial Loans ,
Covenant of Good Faith and Fair Dealing ,
Debt Securities ,
Ernst & Young ,
Fiduciary Duty ,
Financial Institutions ,
Lenders ,
Multi-Factor Test ,
Rebuttable Presumptions ,
Reves v Ernst & Young ,
SCOTUS ,
Securities Regulation ,
State Law Claims ,
Syndicated Loans ,
Trustees
Much has been written about how to calculate the appropriate interest rate for the deferred cash payments a debtor may propose to pay to a rejecting secured creditor under a “cramdown” Chapter 11 plan to meet the “fair and...more
The Sixth Circuit’s recent decision in Digital Media Solutions v. South Univ. of Ohio, 59 F.4th 772 (6th Cir. 2023) provides a cautionary tale about the limitations of federal equity receiverships as a restructuring tool. It...more
8/22/2023
/ Appeals ,
Class Action ,
Corporate Officers ,
Court-Appointed Receivers ,
Creditors ,
Debt Restructuring ,
Directors ,
Nonprofits ,
Quasi In Rem Jurisdiction ,
Receivership ,
Remand ,
Reversal ,
Settlement ,
Subsidiaries ,
Third-Party Release Agrements
Social media continues to grow at an extraordinary pace. Companies regularly introduce new social media platforms to the marketplace and seek new ways to utilize such platforms to advance their businesses. At the same time,...more
8/18/2023
/ Brand ,
Chapter 11 ,
Commercial Bankruptcy ,
Corporate Branding ,
Facebook ,
Marketing ,
Multi-Factor Test ,
Online Platforms ,
Ownership Interest ,
Personal Brands ,
Social Media ,
Social Media Account Ownership ,
Social Networks
This alert highlights a recent decision by Judge Michael E. Wiles in the Bankruptcy Court for the Southern District of New York (“SDNY”), which held that lease rejection damages should be calculated using the “time approach”...more
In a decision of first impression regarding whether certain digital assets are property of a bankrupt debtor’s estate (attached here), Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District...more
Lenders seeking to challenge controversial, often punitive, liability management transactions scored a recent win in Boardriders. The transaction at issue, a priming uptier exchange transaction favoring certain...more
A recent U.S. District Court for the District of Delaware opinion, In re TPC Grp. Inc., provided another instance of an uptiering transaction withstanding legal scrutiny and provides further support for the view that courts...more
8/17/2022
/ Appeals ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Commercial Loans ,
Contract Terms ,
Debt Instruments ,
Legal Opinion ,
Lenders ,
Liens ,
Noteholders ,
Priority Debt ,
Senior Secured Debt ,
Waterfall Provision
Top 10 Questions About Subchapter V Reorganization -
Reorganization under Chapter 11 of the Bankruptcy Code offers powers and benefits that are simply not available in out-of-court restructurings. Chapter 11...more
4/28/2021
/ Bankruptcy Code ,
Chapter 11 ,
Commercial Bankruptcy ,
Coronavirus/COVID-19 ,
Creditors ,
Debt Restructuring ,
Debtors ,
Early Stage Companies ,
Emerging Growth Companies ,
Relief Measures ,
Reorganizations ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA) ,
Startups ,
Trustees
Board Decision Making in a Down Cycle -
The last several months have been unprecedented in terms of how quickly and drastically business environments have changed. With widespread uncertainty and financial distress...more
8/26/2020
/ Board of Directors ,
Coronavirus/COVID-19 ,
Corporate Governance ,
Corporate Restructuring ,
D&O Insurance ,
Duties & Responsibilities ,
Financial Distress ,
Independent Directors ,
Liquidity ,
Personal Liability ,
Special Committees
BUSINESS UNUSUAL -
COVID-19 poses unprecedented global public health and humanitarian challenges. Economically, it marks the end of a growth-fueled credit cycle. It’s been replaced by volatility, uncertainty and...more
On November 17, 2016, in Delaware Trust Co. v. Energy Future Intermediate Holding Company LLC (In re Energy Future Holdings Corp.), Case No. 16-1351 (3d Cir. Nov. 17, 2016), the United States Court of Appeals for the Third...more
In a recent case — In re Optim Energy, LLC — the Delaware Bankruptcy Court denied an individual creditor’s request to pursue the subordination or recharacterization of the claims of secured lenders who were also the debtors’...more