marblegate-amicus-brief-preview

On September 16th, the LSTA filed an amicus brief in connection with an appeal to the U.S. Court of Appeals for the 2nd Circuit of a recent case decided in the Southern District of New York which could have important consequences for the market for distressed debt.  In Marblegate Asset Management v. Education Management Corp. (“Marblegate II”) Judge Katherine Polk Failla, interpreted Section 316(b) of the Trust Indenture Act (“TIA”) expansively, giving rise to concerns that bondholders could exert additional leverage in out-of-court restructurings. The LSTA’s brief argues that the court misread Section 316(b) of the TIA by expanding its reach from the legal right of minority bondholders to receive payments of principal and interest to any action that might have the practical effect of making it more difficult to receive payment.

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marblegate-amicus-brief.pdf

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LSTA Newsletter: January 24, 2020

This week we recap secondary trading for 2019, give an update on LIBOR transition in the U.K., and let you know that we’ve published a credit agreement for investment grade term loans.

LSTA Secondary Trading 2019 Executive Summary

After recording consecutive record highs during the fourth quarter of last year ($211 billion) and again during the first quarter of this year ($212 billion), secondary loan trading volumes decreased 10% in the second quarter, to $191 billion.

LSTA Publishes its Second Credit Agreement

Today the LSTA published a new addition to its document library – the LSTA’s Form of Credit Agreement – Investment Grade Term Loan. This form is designed for a standalone term loan for investment grade borrowers.