Intercreditor disputes in bankruptcy are common. Typically, however, they center around predictable disagreements between senior or junior classes of creditors such as valuation battles or lien perfection challenges. A recent decision in the Delaware chapter 11 case of TPC Group
Continue Reading No Honor Among Creditors: Delaware Judge Issues Important Ruling On “Uptier” Transaction
DIP Financing
Too Cool for School Specialty – Alternative DIP Financing Allows Educational Company to Avoid Immediate Sale
By Ben Feder on
Posted in DIP Financing, Distressed M&A
The School Specialty chapter 11 case began in what has become all too typical fashion. The company, overleveraged and short of cash, had no choice but to accept a lifeline extended by its second lien secured lender, a private investment fund. The…
A&P — Direct Showdown Avoided On Leasehold Liens Under DIP Financing Order
By Ben Feder on
Posted in DIP Financing
Can a debtor seeking debtor-in-possession (“DIP”) financing under Section 364 of the Bankruptcy Code grant a lender a lien on a leasehold interest in the face of an express anti-hypothecation provision in the underlying lease? There are no cases directly on…
Continue Reading A&P — Direct Showdown Avoided On Leasehold Liens Under DIP Financing Order
Court Tosses Life Vest to Trico Marine Services
By Ben Feder on
Posted in Chapter 11, DIP Financing
Some legal commentators have lamented the extent to which lenders have been able to use debtor in possession (“DIP”) financing arrangements to gain control over an entire Chapter 11 case. DIP lenders have usually been able to justify aggressive provisions, and…
Continue Reading Court Tosses Life Vest to Trico Marine Services