Rights Offerings in Bankruptcy

Negotiating and Executing a Deal for Restructuring and Exit Financing

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


Conducted on Wednesday, February 8, 2012

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide bankruptcy counsel with an examination of recent trends in the use of rights offerings as a financing mechanism, review the rights offerings process under the Bankruptcy Code, and discuss debtor and creditor strategies in negotiating and executing a rights offering.

Description

With institutional financing scarce, rights offerings have gained popularity in bankruptcy financing and have been the critical component of many recent Chapter 11 cases.

Rights offerings often draw objections from creditors who until recently have not been successful in blocking them. The 2010 Washington Mutual decision sustaining creditor objections suggests that courts may be willing to take a closer look at the circumstances of the debtor’s proposed plan.

Washington Mutual and other high-profile cases provide a roadmap for creditor objections to rights offerings. Debtors can minimize court challenges with a well-executed strategy and consensus building with the relevant constituencies.

Listen as our authoritative panel of practitioners discusses rights offerings in Chapter 11 bankruptcies, and strategies for debtors and creditors proposing or objecting to a rights offering.

READ MORE

Outline

  1. Trends in use of rights offerings
    1. Use by senior constituencies to validate plan values
    2. Use by junior participants to raise capital to payoff senior indebtedness
    3. Offensive use by market participants to capture share of equity at discount to plan value
  2. Structuring the rights offering
    1. Section 1145 requirements
    2. Planning and execution
    3. Collateral valuation
  3. Objections from creditors
    1. No market test/valuation
    2. Excessive investor incentives/protections
    3. Unfair discrimination

Benefits

The panel will review these and other key questions:

  • What are the recent trends in the use of rights offerings for restructuring debtors?
  • What are the benefits of a rights offering for the various constituents in a Chapter 11 reorganization?
  • What are the best arguments that creditors can make in objecting to a debtor's proposed rights offering?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Thomas R. Fawkes
Thomas R. Fawkes

Partner
Freeborn & Peters

He is an accomplished financial restructuring and bankruptcy attorney, having represented debtors, creditors’...  |  Read More

Michael E. Foreman
Michael E. Foreman

Of Counsel
Haynes & Boone

Mr. Foreman has more than 20 years of financial restructuring and bankruptcy experience, representing secured and...  |  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:

CLE On-Demand Audio

$297

Download

$297