Death Trap Provisions in Chapter 11 Plans: Minimizing the Likelihood of a Cramdown; Incentivizing Consensus
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will discuss how restructuring counsel use "death trap" provisions and related tools to create an accepting impaired class of creditors and thereby ensure confirmation but without violating the confirmation requirements or running afoul of the prohibition against sub rosa plans or the absolute priority rule.
Outline
- The importance with valuations in Chapter 11
- The basics of the death trap provision
- What classes death trap provisions target
- Objections and court approval
- Recent cases
Benefits
The panel will consider these and other important issues:
- What do courts consider in determining whether to approve plans with death trap provisions?
- What are impermissible uses of death trap provisions?
- How can the parties assess whether death trap provisions really minimize the likelihood of a contested confirmation?
Faculty
Rafael X. Zahralddin-Aravena
Partner
Lewis Brisbois
Mr. Zahralddin-Aravena is a member of the Corporate, Bankruptcy, Complex Business & Commercial... | Read More
Mr. Zahralddin-Aravena is a member of the Corporate, Bankruptcy, Complex Business & Commercial Litigation, Digital Asset, and Ukraine Conflict Response Practices. He is a skilled business lawyer and litigator with significant experience advising clients in corporate and commercial litigation, insolvency, distressed M&A, compliance, corporate law and entity formation, corporate governance, commercial transactions, cyber law, regulatory actions, and cross-border issues. He represents clients in all aspects of bankruptcy and restructuring. He has extensive experience in international commercial law issues, including cross-border insolvency, federal bankruptcy court matters, assignments for the benefit of creditors, and receiverships. His international law experience, particularly in international commercial transactions, brings a unique and nuanced approach to business issues inside and outside distressed situations.
Close
Andrew S. Mordkoff
Partner, Business Reorganization & Restructuring
Willkie Farr & Gallagher
Mr. Mordkoff is a partner in the Business Reorganization & Restructuring Department. Andrew represents debtors,... | Read More
Mr. Mordkoff is a partner in the Business Reorganization & Restructuring Department. Andrew represents debtors, creditors, sponsors and investors in large, complex, chapter 11 cases and out-of-court restructurings. She has been significantly involved in numerous complex deals, including acting as counsel to Momentive in its landmark chapter 11 cases, Core Media, the owner of American Idol in its complex cross-border filing, and Aegerion Pharmaceuticals in its successful reorganization which was nominated in 2020 for The Deal’s Restructuring Deal of the Year.
Close
Debra McElligott Sinclair
Partner, Business Reorganization & Restructuring
Willkie Farr & Gallagher
Ms. Sinclair is a partner in the Business Reorganization and Restructuring Department. She represents debtors, lenders,... | Read More
Ms. Sinclair is a partner in the Business Reorganization and Restructuring Department. She represents debtors, lenders, official committees of unsecured creditors, and ad hoc creditor groups comprised of hedge funds, financial institutions and other sophisticated investors in distressed situations. Ms. Sinclair advises clients on all aspects of complex chapter 11 cases and has experience with distressed acquisitions, bankruptcy litigation, cross-border matters and out-of-court restructurings. She has represented parties in restructurings in industries such as real estate, aviation, manufacturing, retail, energy, and pharmaceuticals.
Close