Panel: The evolving landscape of lender-on-lender tension
This time last year in Miami, previous panellists predicted that creditor-on-creditor tensions would continue as investors seek to find advantageous positions in loan restructurings. Hallmark cases including Serta, Boardriders and TriMark are seen as potential for borrowers, operating with a simple majority, to create super senior debt capacity and then “roll-up” or exchange their existing debt into new facilities. Other popular models include so called “dropdown deals” along the lines of Revlon and J Crew’s strategy of moving assets into unrestricted subsidiaries. Most recently, the “double dip” transaction has become a more popular approach. How will the landscape lender-on-lender tension continue to evolve in 2024? Panellists will discuss:
- How are bankruptcy judges’ ‘open market purchase’ or non-pro-rata debt exchange rulings impacting creditors and investors?
- What will the impact of the Serta bankruptcy ruling be on the excluded minority lenders? How will this impact the precedent of this type of cases going forward?
- How are ‘double-dip’ transactions such as Sabre and At Home Group being structured and how will this trend evolve and impact future cases?
- Which innovations have emerged to address the ability of borrowers to engage in uptiering?
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