Finance and Banking

New Accounting Standard for Cryptocurrency and Implications on Distressed Companies

The emergence and widespread adoption of cryptocurrencies has revolutionized the financial landscape and posed significant challenges to traditional accounting practices. The complexities of cryptocurrencies and their increasing involvement in the financial world have given rise to an additional dimension of concern: the intersection of cryptocurrency and bankruptcy proceedings. As regulatory bodies and accounting standards organizations grapple with the complexities of this digital asset class, a new accounting standard for cryptocurrencies is being introduced.

Bank Failures

Life Sciences Financings in Bankruptcy

This session will discuss bankruptcy issues that arise in connection with financing structures common at various stages in the growth of life sciences company, including early stage venture lending , drug development lending, royalty monetizations, and synthetic royalties/revenue interest financings and other hybrid finance structures. Bankruptcy issues include treatment of rights in IP and licensed IP as collateral and under royalty sale structures; executory contract issues with respect to material contracts related to recovery of value of financing (e.g., supply contracts for manufacture of drug); secured or unsecured status under synthetic and hybrid structures; and structuring deals to mitigate bankruptcy.
Recent cases will be discussed to illustrate the features of common structures and treatment of bankruptcy risks and issues by courts (cases include PhaseBio, Mallinckrodt and Clovis). Participants will understand the general features of these life sciences financing structures, the bankruptcy risks involved, how to avoid or mitigate risk in the structures prebankruptcy, and likely outcomes in the event of a challenge to the structure in bankruptcy. Target audience is life sciences companies and their lenders. Creditor Suggested Speakers Martin Beeler mbeeler@cov.com Covington & Burling LLP