Chapter 11 Exit Strategies in the Frozen Credit Market

Evaluating the Alternatives When Bankruptcy Financing is in Jeopardy

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

Conducted on Thursday, January 15, 2009
Recorded event now available

This seminar will explain the impact of the credit market crunch on Chapter 11 exit financing, weigh the benefits and risks of reorganizing versus liquidating, and recommend strategies for bankrupt companies seeking exit financing.


The credit market crisis makes it difficult for corporations under Chapter 11 protection to secure new financing or maintain previously committed funding to enable them to emerge from bankruptcy, forcing many companies into sudden liquidation.

As lenders continue to withdraw from financing commitments, bankruptcy counsel expect an increase in litigation between lenders and bankrupt corporations, particularly around material adverse change (MAC) clauses in loan agreements.

To avoid the possibility of losing bankruptcy funding during a protracted restructuring process, corporations are increasingly prenegotiating reorganization plans prior to filing for bankruptcy protection. Companies are also weighing the benefits and risks of restructuring versus liquidating.

Listen as our panel of bankruptcy attorneys explains the impact of the credit market crunch on Chapter 11 exit financing, weighs the benefits and risks of reorganizing versus liquidating, and recommends strategies for bankrupt companies seeking exit financing.


  1. Current trends in bankruptcy exit financing
    1. Delphi Corporation
    2. Dura Automotive
    3. Solutia Incorporated
  2. Bankruptcy alternatives – pros and cons
    1. Reorganization
    2. Chapter 7 liquidation
    3. Section 363 sale
    4. Merger
  3. Future trends in bankruptcy exit financing and strategies for bankrupt corporations
    1. MAC clause litigation
    2. Pre-negotiated reorganization plans


The panel will review these and other key questions:

  • How has the credit market crisis impacted distressed corporations' ability to secure financing needed to emerge from Chapter 11 bankruptcy protection?
  • What are the anticipated legal consequences of lenders' decisions to deny or withdraw previously committed exit financing?
  • How will the shortened time frames for reorganization mandated in the 2005 Bankruptcy Code Amendments impact corporations seeking financing while under Chapter 11 protection?
  • What are the legal alternatives — and associated strategies — for bankrupt companies currently under control of the bankruptcy court?


Victor Milione, Partner
Nixon Peabody, New York, Boston

He is Group Leader of the firm's Financial Restructuring and Bankruptcy Group with a practice in New York and Boston. He has more than 21 years experience representing financial institutions, debtors, trustees, creditors' committees and hedge funds in out-of-court workouts and bankruptcies. He has taught college courses on bankruptcy and lectures on distressed real estate finance at Boston College.

Theresa V. Brown-Edwards, Partner
Potter Anderson & Corroon, Wilmington, Del.

She is a partner in the Bankruptcy and Corporate Restructuring Group focusing on corporate reorganizations. She has significant experience representing Chapter 11 debtors and debtors-in-possession. She also focuses on the protection of purchasers of assets and creditors' rights, including the representations of creditors' committees, second lien holders' committees, lenders, and landlords.

Michael B. Solow, Partner
Kaye Scholer, Chicago

He has over 20 years experience representing creditors, trustees and governmental agencies and other parties nationwide in the bankruptcy and insolvency area. He is Co-Chair of the firm's Business Reorganization and Creditors' Rights Department and is a frequent lecturer on various topics relating to dealing with insolvent entities.


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Customer Reviews

The program was very thorough, stayed on topic and was well organized.

Thad Wilson

King & Spalding

I felt the program topic was well presented within the short time limit.

Kathy Pilkington


The seminar was very insightful with a terrific grasp of the relevant case law and legal issues.

Gregory Fox

Friedman Kaplan Seiler & Adelman

I thought the speakers were very well versed.

Richard A. Graham

White & Case

The webinar was informative on the current issues.

Lauren Bernstein

Kaye Scholer

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Bankruptcy Law Advisory Board

Mark N. Berman

Adjunct Professor

Northeastern University

Michael E. Foreman



Matthew Gensburg


Greenberg Traurig

Brian E. Greer



Douglas Lipke


Vedder Price

Victor Milione


Nixon Peabody

Steven B. Smith

Senior Consultant

JND Corporate Restructuring

Michael Solow


Kaye Scholer

Robert A. Weber


Skadden Arps Slate Meagher & Flom

or call 1-800-926-7926

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