Restructuring Private Credit Loans: Navigating Covenant-Lite Loan Structures, Exploring Creative Out-of-Court Solutions
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will discuss the rise in private credit restructurings and the changing dynamics between private equity sponsors and private credit lenders when a borrower is in distress. The panel will explore the more expansive restructuring options available with private credit loans, how lenders are navigating covenant-lite loans when a borrower is in distress, lessons learned from recent cases and trends in liability management exercises (LMEs), and whether out-of-court solutions will continue to be the norm in these transactions.
Outline
- Private credit market overview
- Continued evolution of private credit restructuring
- Expanded restructuring options with private credit vs. syndicated loans
- Mitigating liability management risks
- Lessons learned from recent cases and likely future developments in this area
- Practitioner pointers and key takeaways
Benefits
The panel will discuss these and other key issues:
- How has the increasing presence of private credit funds in restructurings changed the dynamics of deals?
- Are private credit funds more open to exploring creative out-of-court restructurings or workout solutions?
- What might be the likely impact of the surge in LMEs in the syndicated market on private credit?
- What are some key lessons to be learned from recent cases and how will these cases impact future private credit deals and restructurings?
Faculty
Timothy John Carter
Director
Goulston & Storrs
Mr. Carter is a corporate attorney with particular expertise in finance, restructuring, and bankruptcy. He represents... | Read More
Mr. Carter is a corporate attorney with particular expertise in finance, restructuring, and bankruptcy. He represents agents, lenders, borrowers, and sponsors in lending and restructuring transactions, as well as debtors, lenders, acquirers, and creditors in insolvency proceedings. Mr. Carter’s corporate finance expertise includes cash-flow and asset-based financings, first lien-second lien, split-collateral, and unitranche intercreditor structures, acquisition financings, distressed debt investments, and UCC Article 9 matters. He also advises on bankruptcy-remote structures and special purpose entity matters in securitizations and real estate financings. In Mr. Carter’s restructuring and bankruptcy practice, he applies his broad corporate and real estate finance experience to counsel debtors, lenders, acquirers, landlords, and other creditors. He advises clients in bankruptcy cases and work-outs, recapitalizations, foreclosure sales, strict foreclosures, and other restructuring transactions and insolvency proceedings throughout the U.S. and in cross-border contexts.
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Michael R. Handler
Partner
King & Spalding
Mr. Handler’s practice focuses on representing lenders and bondholders across the capital structure and companies... | Read More
Mr. Handler’s practice focuses on representing lenders and bondholders across the capital structure and companies in all aspects of workout, restructuring, special situation financing matters and distressed M&A transactions. He also has significant experience in connection with investment manager and broker-dealer liquidations and wind-downs, private credit restructurings and insolvency-related structured finance matters. Mr. Handler is at the forefront of intercreditor litigation and related issues, having led significant contested matters concerning the protection of minority lender rights in litigation in New York Supreme Court.
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Matthew P. Kremer
Partner
O'Melveny & Myers
Mr. Kremer represents debtors, ad-hoc creditor groups, and individual creditors in a variety of distressed situations,... | Read More
Mr. Kremer represents debtors, ad-hoc creditor groups, and individual creditors in a variety of distressed situations, including chapter 11 reorganizations, out-of-court debt restructurings, acquisitions of distressed companies, debtor-in-possession financings, and other corporate reorganizations. He has extensive experience in restructurings across a variety of industries, including retail, energy, exploration, transportation, and municipal debt restructurings.
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