News & Analysis as of

Debt Loan Agreements

Proskauer Rose LLP

Private Credit Deep Dives – Portability (Europe)

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One of the foundational provisions negotiated in almost every European leveraged loan agreement is the “Change of Control” definition and associated clauses. This provision is crucial because it directly impacts the risk...more

Cadwalader, Wickersham & Taft LLP

I Would Prefer Not to – a Scriveners Tale – Not Bartleby

On March 5, 2024, the Supreme Court of the State of New York, ruled that an obvious scriveners error in a guaranty, exempting a guarantor from full recourse liability for the loan’s debt, could be corrected to impose personal...more

Jones Day

Cure and Reinstatement of Defaulted Loan Under Chapter 11 Plan Requires Payment of Default-Rate Interest

Jones Day on

Section 1124(2) of the Bankruptcy Code gives chapter 11 debtors a valuable tool for use in situations where long-term prepetition debt carries a significantly lower interest rate than the rates available at the time of...more

Cozen O'Connor

Overview of the Federal Income Tax Consequences of Defaults and Restructurings Under Loan Agreements

Cozen O'Connor on

Businesses of all types are facing many challenges and uncertainties as a result of the dramatic economic and social forces at work in our current economic environment. In many cases, one of those areas of uncertainty...more

Spilman Thomas & Battle, PLLC

Recent Developments with Make-Whole Provisions in Chapter 11 Cases

A make-whole provision (also known as prepayment premium or call protection) in a loan agreement usually requires a debtor to pay a penalty based on a fixed percentage of the amount of a loan balance the debtor voluntarily...more

Greenberg Glusker LLP

November Surprise? Ninth Circuit Resurrects Post-Default Interest

Greenberg Glusker LLP on

The additional “default interest” owed when a borrower defaults under a loan agreement is a technical but highly critical part of any lending arrangement. This important “default interest” was the subject of a recent Ninth...more

Bilzin Sumberg

Are Distressed Loan Fund Investors “Financial Institutions” And Why Does It Matter?

Bilzin Sumberg on

Once again, those of us in the commercial finance world are reminded of the age-old adage caveat emptor. This time the warning is directed at hedge funds and other investors with a penchant for purchasing distressed debt from...more

Katten Muchin Rosenman LLP

District Court Denies Distressed Funds the Right to Vote on Bankruptcy Plan

The US District Court for the Western District of Washington (the "District Court") recently affirmed a bankruptcy court decision that prohibited a transferee of a secured lender's interest in a loan from voting on a debtor's...more

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