Weekly News – April 8

The BIG news this week…
Incora and intra-class warfare

Matt Levine’s take on Incora. If you read anything this week, read this.


How we got here in pictures

CLOs first replace “relationship lenders” per Professors Berlin, Nini, and Yu (Sept. 2019)

Leading to weaker covenants and the rise of “cov-lite” loans per Professors Griffin, Nini and Smith (December 2021)

Allowing sophisticated borrowers to exploit contractual complexity per Professors Ivashina and Valle (May 2020)


Is there hope for the “market”?

Per Professors Buccola and Nini 75% of leveraged loans would now block an uptier exchange! Go market!


What have the courts said about intra-creditor warfare in pictures

Back in 2017, the New York Supreme Court questioned these tactics by specialty clothier NYDJ:


Split verdict since then in the Courts

ALLOWING: Supreme Court of the State of New York in Serta Simmons (June 2020)

QUESTIONING: Supreme Court of the State of New York in TriMark (August 2021)


For those looking for more on intra-creditor warfare

Professor Diane Dick points out that these hostile restructurings challenge traditional understandings of what it means to be a senior secured creditor.


Why the outlook for SPACs just got much, much worse…

A dismal outlook for SPACs just got worse


More fall-out from Russian sanctions

Russia’s Sberbank to close London investment arm

London arm of Russia’s VTB on brink of collapse as sanctions bite


2021 was a fine year…

Kirkland Surpasses $6B in Revenue, Poised to Remain on Top of Am Law Rankings


Upcoming Events

April 13: Faegre Drinker: Securities Law and the Distressed Bond Trading Market

April 25: NCBJ discusses the NHL Coyotes bankruptcy

April 26: TMA: NYC Judges Luncheon featuring Judges Drain, Jones & Lopez

*NEW EVENT* April 26: INSOL: Evergrande-Tip of the Iceberg for the Chinese Property Sector?

April 28: American Bankruptcy Institute Annual Spring Meeting in Washington DC

May 11: VALCON 2022

*NEW EVENT* June 10: American Bankruptcy Institute New York City Bankruptcy Conference

*NEW EVENT* June 15: Secured Finance Network Women in Secured Finance Conference 2022

*NEW EVENT* June 26: INSOL London Conference

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