Intra-Creditor Class Warfare
What is class warfare?
How did we get here?
Where do we go from here?
Held June 21, 2022
The Creditor Rights Coalition together with the LSTA held an in-depth symposium to discuss one of the most vexing issues in the credit markets: the increasing use of aggressive liability management techniques by companies to advantage one group of creditors over another and the warfare that results among creditors for the spoils.
The Symposium brought together leading academics, practitioners, investors and market participants to discuss the rise of intra-creditor conflict and where we go from here.
To access materials for the event click here:
Panel 1: What is class warfare?
This Panel discussed the controversial practices of “drop-down” financings (e.g., J. Crew) and “uptiering” transactions (e.g., Serta) and implications for the market.
Panel 2: How did we get here?
This Panel discussed changes in the syndicated lending market, weakening of covenant protections, expectations of market participants, and evolving market, contractual and judicial norms.
Panel 3: Where do we go from here?
This Panel discussed the market’s varying reactions to these developments, and what these developments mean for the traditional understanding of what it means to be a lender with a focus on market norms, contractual protections and judicial actions.
Professor Ken Ayotte, Berkeley Law
Assoc. Professor Vince Buccola, Wharton
Chris Chaice, Brigade Capital Management
Kevin Cofsky, Perella Weinberg
Professor Elisabeth de Fontenay, Duke University
Justin Forlenza, Covenant Review
Elliot Ganz, LSTA
David Golub, Golub Capital
Michael Lipsky, Mariner Investment Group
Joel Moss, Shearman & Sterling
Assoc. Professor Greg Nini, Drexel University
Jeff Ogden, Natixis CIM Americas
Lee Shaiman, LSTA
Erica Weisgerber, Debevoise & Plimpton