Hot Potato
Distressed debt investors face a $1.5 billion disgorgement claim resulting from the accidental release of liens securing the GM term loan facility paid off in 2009.
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Curious Disgorge
The scope of your obligation to disgorge repayments of purchased loans may depend upon how and when you purchased them.
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Son of a Beech
Distressed investors that sold off their Hawker Beechcraft loan proceeds around the time the aircraft manufacturer emerged from Chapter 11 have had a bumpy ride closing their trades in the wake of reorganized Beech’s subsequent acquisition by Textron. What’s behind the turbulence, and was it preventable?
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Days Late and Dollars Short: Are the LSTA’s New BISO Rules the End of Short-Selling in the Distressed Loan Market?
Often criticized but neither illegal nor prohibited by standard transfer documentation, the practice of short-selling loans is now subject to new Distressed Buy-In Sell-Out Rules that make it extremely difficult for sellers to timely cover their trades. Here we take a closer look at short-selling after distressed BISO, and consider the implications for breaking trades both under and outside of the new Rules.
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