Bankruptcy Reorganization Plan Strategies: Debt Reinstatement and Indubitable Equivalent

Strategies for Debtors, Lenders and Creditors Proposing or Opposing a Plan of Reorganization

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, September 7, 2011

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide attorneys with an overview and analysis of critical issues related to debt reinstatement and other novel approaches to confirming a plan over senior lender objections. The panel will outline strategies for debtors, lenders and creditors employing or facing a similar plan.

Description

Cram-up reorganization plans, where secured debt is restructured without the lender’s consent, constitute viable options for restructuring existing debt in bankruptcy. In a tight credit market, these strategies can provide strategic advantages for the debtor and require effective defense from lenders.

One cram-up strategy, debt reinstatement, involves curing defaults, de-accelerating debt due, and continuing terms and maturity of pre-filing financing. The debtor’s plan to reinstate existing debt as approved in Charter Communications is instructive on the effective use of this strategy.

A debtor can seek to provide the secured creditor with deferred cash payments equal to the outstanding debt or otherwise provide the lender with the indubitable equivalent of its claim. Alternatively, the debtor may extend the maturity of debt, in effect providing it with additional working capital.

Listen as our authoritative panel of bankruptcy attorneys discusses the trends in debt restructuring alternatives in reorganization plans, recent legal developments in reinstatement of debt, and effective strategies for all stakeholders when a debtor seeks to confirm a plan over the dissenting senior lenders.

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Outline

  1. Market trends affecting debt restructuring plan strategies
  2. Reinstatement of existing debt
    1. Section 1124(2) reinstatement standards
    2. Effective challenges
    3. Recent case law developments
      1. Charter Communications
      2. Spectrum Brands
      3. Young Broadcasting
  3. Equal or indubitable equivalent
    1. Section 1129 plan confirmation standards
    2. Effective challenges
    3. Recent case law developments
      1. DBSD North America
      2. In re River Road Hotel Partners

Benefits

The panel will review these and other key questions:

  • How are current market conditions impacting debt restructuring alternatives in bankruptcy?
  • What must a proponent of debt reinstatement demonstrate to confirm a plan over the creditor's objection?
  • How can the secured lender effectively defeat a plan to reinstate debt?
  • What factors will the bankruptcy court consider in determining whether a secured lender has received the indubitable equivalent of its collateral in a cram-up situation?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Daniel P. Winikka
Daniel P. Winikka

Partner
Jones Day

He represents debtors, creditors' committees, secured creditors, unsecured creditors, and acquirers in complex business...  |  Read More

Richard H. Golubow
Richard H. Golubow

Managing Shareholder
Winthrop Couchot

He is a founding member and the managing shareholder of the Firm. Devoting his practice to the areas of complex...  |  Read More

Christopher Celentino
Christopher Celentino
Partner
Foley & Lardner

He practices in the areas of business reorganization, creditor's rights, insolvency and bankruptcy. His...  |  Read More

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