The recent financial crisis of 2007–2009 has left corporate America in turmoil. Management teams and their advisors are struggling to unravel unwieldy and unsustainable capital structures that were engineered in an era characterized by excessive valuations and risk taking. While rationalizing these capital structures, distressed companies seek consensual resolutions with competing stakeholders to avoid costly and protracted Chapter 11 cases. Collective action is one tool that furthers this goal without doing violence to lender expectations.
To some, collective action may seem too strong a medicine. However, the courts have made clear that group decision-making is a proper and lawful means of proceeding under most forms of syndicated loan documents.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
