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Serta and Mitel: The Latest Major Court Decisions on Uptier Transactions

Summary: On December 31, 2024, two major appellate court decisions addressed the legality of uptier financing transactions—one involving Serta Simmons Bedding (“Serta”) and the other Mitel Networks Corporation (“Mitel”). Both...more

Third Circuit Orders Hertz to Pay Noteholders Post-petition Interest, including Make-Whole Premiums, at Contract Rates

The US Court of Appeals for the Third Circuit recently held that Hertz’s noteholders are entitled to post-petition interest payments, including make-whole premiums, at the contract rate as part of the company’s Chapter 11...more

How the Automatic Stay in Bankruptcy Can Affect Net Asset Value Facilities

Executive Summary - In net asset value (NAV) facilities, the borrowing capacity typically adjusts to reflect changes to the value of the underlying investment portfolio, and borrowers face the risk of potential borrowing...more

NAV Credit Facilities: The Spectrum of Collateral Structures

Executive Summary - Net Asset Value (“NAV”) credit facilities are a tool that borrowers may use to access financing based on the value of their underlying investment portfolio. The users of these facilities are generally...more

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