Chapter 11 is expensive and not always the right tool, particularly for a restructuring of a company with a broken balance sheet, as compared to a business with a broken business model. We have seen a significant uptick in...more
The appointment of an independent director is a powerful tool for private credit lenders. The appointment is designed to introduce a voice of neutrality and fairness into the board’s decision-making process with the hope and...more
2/28/2025
/ Bankruptcy Court ,
Board of Directors ,
Commercial Bankruptcy ,
Contract Terms ,
Corporate Governance ,
Corporate Restructuring ,
Creditors ,
Debt Restructuring ,
Fiduciary Duty ,
Lenders ,
Limited Liability Company (LLC)
In many ways, 2024 continued existing trends in private credit: modest levels of M&A activity, competition among direct lenders to deploy capital, higher-for-longer interest rates, persistent inflation, elevated default...more
1/29/2025
/ Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Corporate Restructuring ,
Creditors ,
Debt Restructuring ,
Debtors ,
Lenders ,
Liability ,
Popular ,
Private Equity ,
Reorganizations
Retaining key management at a distressed company in the midst of an out-of-court restructuring can be necessary for the success of the restructuring. To realign incentives, private credit lenders need to consider reloading...more
As we prepare for the next restructuring cycle, the US private credit industry is becoming more intrigued with ultra-fast bankruptcy cases. These chapter 11 cases grab headlines and last less than a day. Specifically,...more