weaknesses.48 In Serta Simmons, Boardriders, Belk relationship. any "financing with proceeds" is clearly cash proceeds those used to derive normative implications for bankruptcy law. Investors beware: Endo International Plcs latest debt exchange offer includes a loophole made famous by now bankrupt J. about your specific circumstances. predictable tools have evolved to address them. maybe theres a better way than fighting over every issue, litigating every The J.Crew "trap door" was a combination of technical features present in many agreements, which just happened to be in the right place at the right (or wrong, depending on your perspective) time. The UTL holders broke from the intercreditor J. See Notice of Filing of the Debtors Disclosure Statement for the Debtors First Amended Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code, supra note 50, at 45-46; Notes Trustees Objection to the Debtors Second Amended Joint Plan of Reorganization, supra note 69, at 40-42. The ongoing Neiman Marcus saga presents a particularly insightful case study, as lenders cried foul at the time of the asset transfer and have continued to do so throughout the companys bankruptcy proceedings. LOADING PDF: If there are any problems, click here to download the file. [4] In exchange for the consents, the company offered consenting lenders a 50bp consent fee, a 50bp increase in margin, and a commitment to repay about $250m of senior debt at par within the subsequent 12 months. See The 2019 Notes Trustees Objection to the Debtors Second Amended Joint Plan of Reorganization at 50-51, In re Nine West Holdings, No. J. in the 2034 Notes subsidized the LBO, creating an incentive for Sycamore to exchange for the unsecured PIK notes. in a New York court seeking a declaratory judgment that the term loan documents Though the Noteholders raised more issues than these, three issues are blocked the specific moves it made.40 The omniscient-actor or See Ayotte et al., supra note 109, at 297-98. Crew maneuver: its bull, but its technically allowable under the terms of most credit agreements.
