Pre-Chapter 11 Priming Transactions: Creating Liquidity, Delaying Maturities, Removing Covenants
Liability Management Transaction Structures and Vulnerabilities in or out of Bankruptcy
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss strategies that borrowers are increasingly using to create liquidity, delay maturities, and relieve covenant pressure to prevent bankruptcy while also allowing certain creditors to maintain control and preferred priority if bankruptcy ensues. The program will discuss how these transactions work; how they compare with post-petition financing, roll-ups, and priming; their vulnerabilities in bankruptcy; and how different constituencies can respond.
Outline
- Rise of liability management transactions
- Drop-down financing
- Uptiering transactions
- Relevant cases
- Impact on reorganization and confirmation
Benefits
The panel will review these and other key issues:
- How do pre-filing uptiering and drop-down transactions affect Chapter 11?
- Are liability management transactions vulnerable to fraudulent transfer claims?
- Are liability management transactions only relevant in participation?
- Could a Chapter 11 plan release claims between creditors?
Faculty
Adam P. Haberkorn
Counsel
O'Melveny & Myers
Mr. Haberkorn is a corporate counsel in O’Melveny’s New York office who focuses his practice on advising... | Read More
Mr. Haberkorn is a corporate counsel in O’Melveny’s New York office who focuses his practice on advising clients in in-court and out-of-court restructurings and in executing complicated financing transactions. He has extensive experience in corporate bankruptcy-related matters, and has represented debtors, creditors, lenders, purchasers, and other parties-in-interest in a wide variety of industries.
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Jeff L. Norton
Partner
O'Melveny & Myers
Mr. Norton, a member of the firm's global finance practice, focuses on corporate finance matters, with particular... | Read More
Mr. Norton, a member of the firm's global finance practice, focuses on corporate finance matters, with particular emphasis on acquisition finance. His experience includes advising on syndicated senior and junior leveraged debt, bridge loan financings and high yield issuances in the U.S., Europe, Asia and Latin America, including numerous U.S. and European TLB and Yankee loan transactions. He advises corporates, financial institutions, financial sponsors and funds on a variety of finance matters such as leveraged finance, general finance, liability management transactions as well as restructurings.
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Daniel S. Shamah
Partner
O'Melveny & Myers
Mr. Shamah is a premier restructuring lawyer who is universally lauded by peers and clients for his expertise in... | Read More
Mr. Shamah is a premier restructuring lawyer who is universally lauded by peers and clients for his expertise in complex restructuring and insolvency matters. Not only is he adept at conventional bankruptcy and restructuring proceedings, he is also an experienced litigator and handles disputes surrounding some of the most complex commercial and financial instruments across a broad range of industries and practices. Because of Mr. Shamah’s creative approach and exceptional knowledge base, leading financial institutions, private equity sponsors, hedge funds and public and private companies call on him to help them navigate a host of bankruptcy and restructuring issues. From lender liability and fraudulent conveyances to distressed debt investments and complex commercial litigation, he has achieved successes for his clients in every type of restructuring scenario—and his track record proves it.
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Jennifer Taylor
Partner
O'Melveny & Myers
Ms. Taylor is a partner in O’Melveny’s corporate finance and restructuring practice groups. She is also a... | Read More
Ms. Taylor is a partner in O’Melveny’s corporate finance and restructuring practice groups. She is also a member of O’Melveny’s Fintech and Emerging Technologies industry groups. Ms. Taylor has deep experience negotiating debt financing transactions of all varieties, including financings for leveraged buyouts, secured and unsecured working capital facilities, venture debt facilities, and other structured financings, including mezzanine loans, high yield, and DIP financing for debtors in bankruptcy.
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