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Cooperation Agreements Help Distressed Lenders Negotiate as One

Cooperation agreements are a new tool for distressed debtholders seeking to negotiate from a position of unity and strength. These agreements can also help debtholders defend themselves against a growing opportunistic...more

Too Much of a Good Thing: Congress Allows Increased Subchapter 5 Eligibility Level to Expire

Over the past few years, one of the universally celebrated success stories in the bankruptcy and restructuring world has been Subchapter V of the Bankruptcy Code. Created by the Small Business Reorganization Act of 2019 (the...more

Last Dance? Third Circuit Shuts Down ‎J&J Affiliate’s Chapter 11 Case Predicated on “Texas Two-Step”‎

At the end of January, the Third Circuit Court of Appeals issued its long-awaited decision in the Chapter 11 bankruptcy case of LTL Management LLC (“LTL”), an affiliate of Johnson & Johnson (“J&J”). In a decision authored by...more

CARES Act Guide: Overview of Key Reorganization Provisions and Bankruptcy Code Amendments

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act”, into law. The CARES Act will provide significant financial relief to individuals and small businesses,...more

When Chapter 11 Plan Distributions are not Collateral: Enforcing Intercreditor Waterfall Provisions in Bankruptcy

On June 19, 2019, Circuit Judge Stephanos Bibas (United States Court of Appeals for the Third Circuit) delivered an important opinion analyzing the enforceability of an intercreditor agreement relative to the distribution...more

The Covenant Loophole That Wasn’t: SDNY Derides Windstream’s Structuring Efforts as “Too Cute by Half”

On February 15, 2019, following a full bench trial, the Honorable Jesse M. Furman (S.D.N.Y.) entered judgment in favor of Aurelius Capital Master, Ltd. (“Aurelius”) and against Windstream Services, LLC (“Windstream”) in the...more

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