Rights Offerings in Bankruptcy: Negotiating and Executing New Equity Financing, Overcoming Creditor Challenges
Recording of a 90-minute CLE webinar with Q&A
This CLE course 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.
- Trends in use of rights offerings
- Use by senior constituencies to validate plan values
- Use by junior participants to raise capital to pay off senior indebtedness
- Offensive use by market participants to capture a share of equity at a discount to plan value
- Backstop commitments
- Structuring the rights offering
- Registration exemptions under Section 1145/private placements
- Planning and execution
- Objections from creditors
- Market test/valuation
- Investor incentives/protections
- Unequal treatment
The panel will review these and other essential matters:
- 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 ways to structure a rights offering to ensure court approval?
Chad J. Husnick, P.C.
Kirkland & Ellis
Mr. Husnick represents debtors, creditors, equity holders, and other stakeholders in all aspects of corporate liability... | Read More
Mr. Husnick represents debtors, creditors, equity holders, and other stakeholders in all aspects of corporate liability management, restructuring, bankruptcy, and insolvency proceedings. He has represented clients in a variety of industries, including energy, retail, infrastructure, manufacturing, transportation and distribution, hospitality and gaming, real estate, automotive, and printing. Mr. Husnick is a lecturer in the law at the University of Chicago Law School and a contributing author for Collier on Bankruptcy—the leading treatise on bankruptcy law.Close
James J. Mazza, Jr.
Skadden Arps Slate Meagher & Flom
Mr. Mazza represents debtors, creditors, asset purchasers and private equity investors in corporate restructuring... | Read More
Mr. Mazza represents debtors, creditors, asset purchasers and private equity investors in corporate restructuring transactions, both in and out-of-court, involving clients’ interests across the globe. His experience extends to a wide variety of industries, including automotive, airlines, energy, financial services, healthcare, gaming, real estate and retail. Mr. Mazza also regularly advises companies’ management and boards of directors regarding fiduciary duty issues in financially distressed situations.Close