What's a Lender to Do? A Review of Some 2020 Cases on "Liability Management Exercises" and the Loan Covenants That Spawn Them

Thursday, Jan 21 2021 - 05:00 PM

The program will be presented by webinar | A link to join the webinar will be provided by email to all ACFA members in good standing


Our moderator for this webinar will be David Morse, a partner at Otterbourg, P.C., New York, NY. He will be joined by Valerie Mason from the finance practice at Otterbourg P.C.
The webinar will have two parts. First, the panel will examine some of the headline cases on “liability management exercises,” which have surfaced in transactions concerning sponsor-owned borrowers such as J. Crew, PetSmart and Neiman Marcus, and which have led to disputes and litigation among lenders and borrowers and among lenders themselves. The panel will then discuss recent transactions by borrowers, and particularly sponsors, which have also attempted to use the covenants in a credit agreement to reduce the sponsor’s risk of recovery from a troubled investment while increasing the risks to the lenders. Second, the panel will explore the details of the covenants themselves that lenders need to scrutinize carefully in order to understand how these disputes may arise and how to address them.

Gold Level Annual Sponsor: Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

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