Those seeking to purchase assets or a business out of a Chapter 11 case employing a “loan to own” strategy may well have received a boost from a recent decision of the U.S. Court of Appeals for the Ninth Circuit....more
2/13/2019
/ Acquisition Finance ,
Appeals ,
Asset Purchaser ,
Bad Faith ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Dual Class Share Structures ,
Global Market ,
Majority Voting Policies ,
Mortgage Lenders ,
Private Equity ,
Reaffirmation ,
Reorganizations ,
Reversal ,
Split of Authority
Basic to any acquisition and its financing are the projections of the target’s future performance. These play a key role in setting the price for the target as well as on the availability of acquisition financing. Projections...more
When a portfolio company underperforms, an equity sponsor will want to assess the degree of negotiating leverage the company’s lenders have against the company under the circumstances, which can play a significant role in...more
4/12/2017
/ Acquisition Finance ,
Appeals ,
Bankruptcy Court ,
Bondholders ,
Breach of Contract ,
Chapter 11 ,
Commercial Bankruptcy ,
Consent ,
Debt Restructuring ,
Default ,
Forbearance Agreements ,
Lenders ,
Post-Bankruptcy Covenants ,
Remedies ,
Subsidiaries ,
Trust Indenture Act ,
Vessels
A recent Delaware bankruptcy court decision may potentially place at risk an equity sponsor’s ability to retain proceeds from the sale of a portfolio company whose performance later deteriorates, where the selling sponsor...more
Private equity sponsors should be aware of two recent court decisions. One involves fiduciary duties under state law that may be owing to a limited liability company borrower by its managers, in the context of receivables...more
When a portfolio company underperforms, a sponsor may consider various options to address the perceived performance issues, including changes to a portfolio company’s management team, cost structure, capital structure or...more
10/16/2015
/ 363 Sales ,
Acquisition Finance ,
Bankruptcy Code ,
Bonds ,
Borrowers ,
Chapter 11 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Lenders ,
Loan Agreements ,
Private Equity ,
Private Placements ,
RadioShack ,
Rule 144A ,
Trust Indenture Act
Recent legal and regulatory developments have raised issues for those considering a loan-to-own acquisition strategy, and have continued to impact both the structure of highly leveraged financings and the makeup of those...more
Several recent legal developments will likely impact acquisition finance.
A recent decision of the U.S. Bankruptcy Court for the Southern District of New York examines who is an “Eligible Assignee” entitled to acquire...more