
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.
read more
Curious Disgorge
The scope of your obligation to disgorge repayments of purchased loans may depend upon how and when you purchased them.
read more
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?
read more
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.
read more