Liability Management Transactions:  The Saga Continues...

     We first heard about “liability management exercises” by sponsor owned borrowers when we looked at J. Crew, PetSmart and Neiman Marcus—transactions that led to disputes and litigation among lenders and borrowers and among lenders themselves.

     These are the transactions that borrowers, and particularly sponsors, enter into as an out-of-court debt restructuring using covenants in the credit agreements and amendments to improve the position of the sponsor and selected lenders and reduce their risk in distressed circumstances while increasing the risks and reducing the recovery of other lenders.  The case law continues to evolve as the litigations proceed—most recently last summer with some decisions out of the Bankruptcy Court in Houston in one of the “classic” uptiering cases—Serta, and the last few months with the further bankruptcies of Incora and Robertshaw.

     We will look at the cases and then the covenants to see what lenders are doing to address the unexpected restructuring that may come their way.

REGISTRATION:

Event is FREE for SFNet NY Chapter Members - Sponsored by Otterbourg P.C. 

SFNet NY Chapter membership must be current in order to register without charge.

2024 New York Chapter Membership Dues:

• YoPro Free
• SFNet National Member & Foundation Contributors $50
• Non-SFNet National Members $75

Pay 2024 membership dues here.

SPEAKERS:
David W. Morse, Partner, Finance Practice Group, Otterbourg P.C. (New York, NY)
Valerie Mason, Partner, Finance Practice Group, Otterbourg P.C. (New York, NY)

For questions or additional information, please contact Paul H. Shur, Becker & Poliakoff, SFNet NY Education Chair at pshur@beckerlawyers.com or 212-440-8102.