Debt Financing

News & Analysis as of

In re Alternate Fuels, Inc.: Key Takeaways for Venture Capitalists Working with Emerging Companies

Venture capitalists (“VCs”) often provide needed debt financing such as bridge loans to emerging companies in financial distress. However, given their insider status with these companies, VCs may encounter issues with such...more

Craft Beer Industry Update: M&A ESOPs and Liquidity Transactions over the past 12 Months

Craft beer is at a turning point in the history of the industry. Craft beer has grown dramatically (about 20% in 2014) during a time when overall beer consumption has increased only 0.5%.1 This has changed everything -- from...more

French Supreme Court rules out liability for undercapitalising companies

Minimum share capital requirements have disappeared from French legislation over the last few years, leaving the société anonyme as the last and only commercial company with such a requirement, set by the French Commercial...more

Current Marketplace Trends in Real Estate Crowdfunding

Today, there appears to be an ever-expanding number of sponsors and markets for crowdfunding. Commercial real estate is no exception. At the recent IMN US Real Estate Opportunity & Private Fund Investing Forum, Elizabeth...more

Grexit: Grief or Gift?

On July 5, the Greeks voted emphatically against their creditors’ proposals. Earlier that week, the IMF released a report in which it recommended a comprehensive recover plan that included a debt relief or a debt moratorium...more

“Dead Hand Proxy Puts” Garner Increased Stockholder Scrutiny In Delaware

A ruling last fall by the Delaware Chancery Court has prompted a wave of 8 Del. C. § 220 books and records inspection demands on (and threatened litigation against) Delaware corporations that have entered into credit...more

Dead Hand Proxy Puts Face Continued Scrutiny

"Dead hand proxy puts’’ have emerged as the target du jour for entrepreneurial plaintiffs counsel litigating corporate governance claims. Since last fall, at least seven separate actions have been filed in the Delaware Court...more

Income Tax & Crowdfunding

Income tax may not be front of mind when starting a crowdfunding campaign, but early consideration of the issues could prevent a panic-inducing call from the Australian Taxation Office. The choice of crowdfunding model...more

Points & Authorities - Spring 2015

In this Issue: - Negotiating Strategies for the Successful Sale of Technology Companies - Broker Beware: Are Real Estate Brokers Susceptible to Agent v. Agent Fee Splitting Disputes After Sanowicz v. Bacal? -...more

KISS the SAFE Goodbye? Another Alternative for Start-up Financing

Only recently, we debated the merits of the SAFE (Simple Agreement for Future Equity), an alternative funding mechanism for early-stage companies designed to replace the industry-standard convertible note financing....more

Debt Financing Trends – Joe Price, Member, Corporate & Securities Practice [Video]

Joe Price discusses the various debt financing options available for leveraged sponsor deals and provides an overview of recent lower middle-market trends....more

Are You an E&P Company Facing a Liquidity Crunch and Considering Restructuring?

In this interview, Latham & Watkins partner Michael Chambers looks at the impact of borrowing base redeterminations on exploration and production (E&P) companies. He also discusses additional debt capacity under high...more

Bank and Finance: The Equity Cure Provision—Saving Debt with Equity

For many sponsor backed borrowers, and this would include technology companies which have raised at least one round of financing, the equity cure provides a lifeline which isn’t necessarily available to traditional borrowers....more

Corporate & Financial Weekly Digest - Volume X, Issue 15

In this issue: - Update: Proposed Amendments to DGCL, Including Ban on Fee-Shifting and Permitting Exclusive Forum Provisions - CFTC and Australian Regulator Sign Memorandum of Understanding Regarding...more

I’ll Know it When I See It: Debt vs. Equity in a Partnership

Of the many financial decisions a business faces in its life cycle, one of the most frequent (and certainly most important) is how best to fuel continued growth: should the business issue new debt or new equity? ...more

Why Start-Ups Use Convertible Debt Part III: The Virtues of Convertible Debt for a Start-Up

Over the course of our “Why Start-Ups Use Convertible Debt” series, we’ve discussed the two common paths start-up companies take to structure a financing. In Part I, we discussed common stock financing and in Part II, we...more

The Healthcare & Technology Industries’ Burgeoning Emerging Growth Debt Market

The emerging growth debt market has grown significantly in recent years, with the majority of deals in the healthcare and technology spaces. Latham & Watkins partners Jim Morrone and Haim Zaltzman, who focus their practices...more

Prescriptions for the Headache of High Cost Drugs

A March 11 policy conference in Washington produced some creative thinking about the problem of high-cost specialty drugs. And on the same day, the RAND Corp. think tank released a study on the subject, “Borrowing for the...more

Distressed Energy Sector Creates Need for Thoughtful Tax Planning

How do tax issues change for energy companies in a distressed environment? KS: Companies in a distressed environment often generate substantial losses which may need to be funded with additional debt or equity...more

Quality of Assets Driving Distressed Energy Sector Dynamics

It seems the price of oil has stabilized, moving slightly up or down rather than taking dramatic shifts. If this pattern holds, how will this impact the challenges companies will face in the next few months or for the rest of...more

SBIC Investment: A Potential Source of Capital for Government Contractors

Owners of privately-held businesses generally finance their businesses with their own capital, augmented with bank loans. An additional source of funding for government contractors is available from Small Business Investment...more

Convertible Notes – a Great Tool for Investment

So you have started your company! Maybe you have an investor or are looking for investors. How do you structure an investment to set everyone up for success? For many companies, convertible notes are the right answer....more

Tech Industry Bulletin

In this Bulletin: - Intellectual Property: Guidance to the Upstart Tech Company for Protecting IP Rights - Mergers & Acquisitions: Five Legal Issues Entrepreneurs Should Consider Before Agreeing To an Earn-Out...more

"Health Care Sector Creates Challenges for Distressed Providers, Opportunities for Others"

In 2014, the health care industry continued to see a high level of M&A activity, with announced transactions approaching $440 billion globally by the end of November. In the United States, consolidation continues to occur in...more

Distressed Debt - UK Tax Changes

We discuss below changes to UK tax law in respect of corporate debt which take effect from the beginning of this year which will improve the UK tax position for distressed debt of a UK company....more

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