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Recent Second Circuit Decision Holds That Term Loans Are Not Securities in a Win for Participants in the Syndicated Loan Markets

In Kirschner, the Court of Appeals for the Second Circuit unanimously affirmed a district court order that held that notes evidencing term loans were not securities but rather “[l]oans issued by banks for commercial...more

Caveat Lendor: Serta Confirmation Opinion Permits Uptier with Finding of “Good Faith” and Provides Indemnity for Participating...

Majority lender groups and stressed borrowers notched another win in the uptier wars when Judge David Jones of the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) issued a June 6, 2023 opinion (the...more

Liquidity Crises and Fiduciary Duties of Directors of Early-Stage Companies

The FDIC receiverships of Silicon Valley Bank and Signature Bank have caused certain early-stage companies to face potentially crippling near-term liquidity issues. These liquidity issues may result in a company becoming...more

10 Tips for Navigating a Liquidity Crunch as a Startup or Emerging Company

The March 2023 banking crisis has been an unexpected “stress test” for dealing with liquidity issues. When state regulators closed Silicon Valley Bank this past Friday, many startups understandably faced severe liquidity...more

Recent Ninth Circuit Decision Regarding Interest on Claims for Unimpaired Credit

On August 29, 2022, in the PG&E bankruptcy matter, the Court of Appeals for the Ninth Circuit became the first circuit-level court to address the question of what is the correct rate of interest to be applied to unimpaired...more

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