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.
Description
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.
Outline
- Current trends in bankruptcy exit financing
- Delphi Corporation
- Dura Automotive
- Solutia Incorporated
- Bankruptcy alternatives – pros and cons
- Reorganization
- Chapter 7 liquidation
- Section 363 sale
- Merger
- Future trends in bankruptcy exit financing and strategies for bankrupt corporations
- MAC clause litigation
- Pre-negotiated reorganization plans
Benefits
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?
Faculty
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.
Recordings
CLE On-Demand - Streaming Audio
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CLE On-Demand Audio $297.00
Recorded Event
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CLE Credits
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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
McGuireWoods
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
Bankruptcy Law Advisory Board
Adjunct Professor
Northeastern University
Partner
ForemanLaw
Matthew Gensburg
Shareholder
Greenberg Traurig
Partner
Dechert
Shareholder
Vedder Price
Partner
Nixon Peabody
Senior Consultant
JND Corporate Restructuring
Partner
Kaye Scholer
Counsel
Skadden Arps Slate Meagher & Flom
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