From Shield to Sword: How Cooperation Agreements Became the Weapon They Were Designed to Prevent
What began as a defensive hedge against creditor-on-creditor violence has ignited a legal war that could fundamentally redefine how creditors coordinate
Cooperation Agreements, Overview and Effectiveness in Restructuring Situations
Today, we will shift focus to how creditors have responded to LMEs. Until now, creditors had no choice but to watch sophisticated sponsors handpick a select few who would receive preferential treatment. Distrust ran through messy, unorganized capital structures. But what if creditors could defend themselves as a unified group?
Today’s restructuring world is highly complex. Uptier and Dropdown were the first versions of liability management transactions we saw. In the past few years, we have seen a new breakthrough in liability management transactions: double-dips.
To solve the recovery disputes and the issues associated with valuations, creditors may utilize 'bankruptcy gifts.' These gifts can be broken into two categories: gift carve-outs in section 363 sales and gifting in chapter 11 plans.
