Investment Banking

The strategy of providing funding to troubled companies or purchasing existing secured debt at a discount in order to obtain ownership (so-called “loans-to-own”) continues to inspire controversy and litigation even as its use by debt financiers and other investors has become more commonplace. This panel will explore the practical considerations, business risks and legal issues associated with loans-to-own, both inside and outside of bankruptcy. Discussion on transactions outside of bankruptcy will include the scope of due diligence, intercreditor issues, insider participation, “bankruptcy-proofing,” and the risks and benefits of a “friendly foreclosure.” Discussion on transactions inside of bankruptcy will include using DIP financing to achieve ownership, potential limits on credit bidding, the impact of including or excluding insiders from the post-closing company, and risks presented by remedies such as equitable subordination and involuntary debt recharacterization.

Presented by the Business Reorganization and Financial Advisors & Investment Banking Committees

How do hedge funds and other distressed investors think about the world? Our panelists know the answers! Come and learn how distressed investors examine opportunities in bankruptcy cases and how they think about pursuing their objectives during a bankruptcy case.

This panel explores DIP issues in a chapter 11 case and is intended to provide both fundamental information and an overview of emerging issues, including: What is the primary analysis that needs to be undertaken? How do you assess a 13-week cash flow? Who are your potential lenders, and what are the potential terms? What are the pitfalls and areas of concern for other parties in interest, the U.S. Trustee and the court?

Legal and Practical Issues Involving Secured Creditors and the Retention of Financial Advisors.

How does valuation factor into successful distressed investment strategies? Are valuations for distressed assets and companies increasingly dependent on an assessment of the underlying hard assets of target companies? How does commodity pricing risk factor in? What happens when valuations in general become too rich for firms to generate returns typically sought by distressed investors? Are distressed investors becoming more opportunistic by looking beyond valuation metrics to enhance returns through advocating legal interpretations in underlying credit documents to support enhanced recoveries? Our roundtable will examine these questions and discuss their views on the outlook for distressed investing in 2016 and beyond.

You Are Selling My What? Valuation and Sale of Intellectual Property and Customer Information by a Distressed Company

This panel will present a roundtable discussion.

This panel will discuss bankruptcy-related issues affecting private equity funds, including fiduciary duty and corporate governance issues, WARN Act and pension issues, and fund liability for portfolio company obligations, as well as issues affecting hedge funds, including recent decisions interpreting the Indenture Trust Act, claims trading, restriction and disclosure issues.