Exit Financing in Chapter 11 Bankruptcy: Debt, Equity and Combination Structures
Recording of a 90-minute CLE webinar with Q&A
This CLE course will examine the different forms of exit financing currently available to Chapter 11 debtors, and some structural and procedural issues associated with each. The panel discussion will include best efforts vs. committed financing, high yield debt offerings, rights offerings and other equity structures.
- Exit financing as an intergral part of the reorganization plan
- Debt financing
- “Best efforts” vs. committed financing
- Material adverse change and other clauses
- High yield debt offering: escrows, other terms, court approvals
- New investment in exchange for equity in the reorganized debtor
- Bank of America v. LaSalle and new value concerns
- Rights offerings
The panel will review these and other critical issues:
- Why is “committed” preferable to “best efforts” financing in getting plan approval, and when might best efforts financing be preferable?
- What are the escrow features of high yield debt, and what structural characteristics will the court consider when seeking approval?
- What are the standard requirements for a “new value” equity plan?
- How should a rights offering be structured to take advantage of applicable securities registration exemptions?
John D. Elrod
Mr. Elrod focuses his practice on bankruptcy, creditors' rights, and commercial litigation. He regularly represents... | Read More
Mr. Elrod focuses his practice on bankruptcy, creditors' rights, and commercial litigation. He regularly represents secured lenders, indenture trustees, creditor committees, estate fiduciaries, and other parties in commercial bankruptcies, out of court restructurings, and litigation. John also has wide-ranging experience in litigation involving complex fraudulent transfers, corporate director and officer fiduciary duty claims, and public finance matters. He has broad experience in federal, state, and bankruptcy courts throughout the United States.Close
Paul J. Keenan, Jr.
Mr. Keenan is a shareholder in the Restructuring & Bankruptcy Practice. His practice includes the representation of... | Read More
Mr. Keenan is a shareholder in the Restructuring & Bankruptcy Practice. His practice includes the representation of corporate debtors and creditors in bankruptcy cases, receiverships, assignments for the benefit of creditors, loan workouts, asset sales, wind downs and UCC foreclosures. Mr. Keenan represents clients in courts across Florida and nationwide, including wide-ranging experience before the bankruptcy courts in Delaware. He also provides insolvency-related structuring advice and legal opinions in connection with complex financial transactions. Mr. Keenan is a past President of the Bankruptcy Bar Association for the Southern District of Florida. He has substantial experience in cross-border bankruptcies and restructurings.Close