Prepackaged and Prenegotiated Chapter 11 Reorganizations: Debtor and Creditor Strategies

Negotiating Restructuring Support Agreements; Navigating Valuation, Credit Bidding and More

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


Conducted on Tuesday, March 7, 2017

Recorded event now available

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Program Materials

This CLE webinar will analyze the benefits and risks facing a company when considering the use of a prepackaged or a prenegotiated plan for a Chapter 11 reorganization. The program will discuss the complex issues that debtors and creditors face in negotiating the plan, such as restructuring support agreements, valuation and credit bidding, and strategies for all parties and constituents.

Description

Prepacks can be significantly more efficient and less costly than filing a typical Chapter 11 and negotiating a plan after filing. However, debtors must carefully consider whether the risks of prepacks outweigh the time and cost savings.

Like prepacks, prenegotiated restructuring plans minimize the duration and expense of Chapter 11 cases. Prenegotiated plans might be a viable alternative if the prepack option is too risky for the debtor.

Restructuring support agreements, or “lock up” agreements are frequently entered into between the debtor and creditors with whom the debtor negotiated the plan. These agreements are the road map for the debtor’s plans to exit Chapter 11 reorganization and are often contentiously negotiated and frequently litigated.

After the Marblegate and Caesars bankruptcy litigation, minority bondholders have a powerful tool to hinder non-consensual out-of-court restructurings and provide them with increased leverage in negotiations. To the same degree, the decisions could greatly hamper the ability of distressed obligors to devise a prenegotiated reorganization plan.

Listen as our authoritative panel of restructuring attorneys delves into the benefits and risks for both debtors and creditors of prepackaged and prenegotiated plans to accomplish a Chapter 11 reorganization. The panel will offer strategies for all constituents in negotiating these plans. The panel will focus on issues that are currently heavily contested in today’s environment, including restructuring support agreements, valuation and credit bidding.

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Outline

  1. Overview of prepacks and prenegotiated bankruptcy plans
    1. When each is appropriate
    2. Jurisdiction and venue issues
    3. Differences between the plans
  2. Creditor side strategies
  3. Debtor side strategies
  4. Current issues that are heavily contested
    1. Restructuring support agreements
    2. Valuation
    3. Credit bidding
    4. Indenture trustees

Benefits

The panel will review these and other key issues:

  • Differences between prepackaged and prenegotiated bankruptcy plans
  • Benefits and disadvantages of prepackaged and prenegotiated bankruptcies for lenders and debtors
  • Negotiating restructuring support agreements

Faculty

Van C. Durrer, II
Van C. Durrer, II

Partner
Skadden Arps Slate Meagher & Flom

Mr. Durrer leads the Firm's corporate restructuring practice in the western United States and advises clients...  |  Read More

Sunny Singh
Sunny Singh

Partner
Weil Gotshal & Manges

Mr. Singh focuses his practice on business finance and  restructuring. He advises debtors, creditors,...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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