International Insolvency

Fifth Circuit Receivership Opinion Raises Questions About the Automatic Stay

Fifth Circuit says that the court must have obtained personal jurisdiction over a third party in a receivership to enforce an injunction. Is the same true for the automatic stay and the discharge injunction in bankruptcy? Is there no injunction before there’s personal jurisdiction?

Exploring the Reach of Redwater

Sept 2024

Lender-on-Lender Violence – A Viable Solution or Delaying the Inevitable?

The prevalence of liability management exercises (LMEs) continues to grow as companies seek creative solutions to manage unsustainable capital structures. Majority creditor groups have a long list of options to choose from in order to put themselves in front of minority creditors – priming, uptiering, covenant stripping, drop-down transactions and more. But the track record for so-called lender-on-lender violence has been patchy at best, often serving as a precursor to bankruptcy, rather than a way to avert it.

Potential discussion points:
1) What are some key takeaways from recent litigation, and what could have been done differently?
2) How can minority/nonparticipating lenders best protect themselves via creditor cooperation agreements?
3) What are the implications of these transactions on valuations?
4) How have these transactions evolved, and what does the future of lender-on-lender violence hold?
Attendees will gain an understanding of the current and future state of liability management exercises, including insights on litigation trends and updates on several recent key appeals.

Attendees will also learn about strategic approaches for creditors to effectively navigate these challenges and how lawyers can stay on top of these issues for their clients.

The session will provide projections for the distressed debt landscape in the upcoming year, equipping participants with knowledge to forecast opportunities that may arise.
Debtor Suggested Speakers Suezelle D'Costa s.dcosta@hawthornadvisors.com Hawthorn Advisors

Japanese Version of Debtor-in-Possession Financing: Overview and Recent Trends

Debtor-in-possession (DIP) financing is known as the supply of additional financing to financially distressed debtors undergoing insolvency procedures. This kind of loan has become an essential component of restructuring as rescue financing for debtors on the verge of cash shortages.

Historically, the U.S. developed legislation in favor of DIP lenders by giving special protection to DIP loans under chapter 11, Title 11 of the U.S. Code (the Bankruptcy Code). It has promoted DIP loans, resulting in a large DIP-financing market.

The U.K. Restructuring Plan: Striking a Balance in Cross-Border Restructurings

Sept 2024

Is There a Common-Law Alternative to Chapter 15? A Response to Rochelle’s Daily Wire and Prof. Jay Westbrook

Aug 2024