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Loan Market Events & Education

Through a series of global conferences, webcasts and CLE seminars, the LSTA educates loan market participants and promotes the asset class. In addition, a series of multimedia presentations are made available to the broader investment community.

Out of Court Settlement Through Credit Agreement Baskets

September 26, 2017, 4PM to 5:20PM (ET)

The LSTA was pleased to present:

OUT OF COURT SETTLEMENT THROUGH CREDIT AGREEMENT BASKETS

  • Credit agreements and indentures often contain "baskets" for companies to undertake transactions, such as taking on new debt, so long as they satisfy the conditions and limitations of the basket.
  • These conditions can include such things as caps on the maximum amount of a given transaction and limitations on the sale or other divestiture of property.
  • Companies in financial distress have in some situtions sought to use the availability of baskets as a tool in an out of court restructuring.
  • Holders of the existing debt have objected to the use of the basket in certain situations because they believe the given transaction goes beyond that is permissible under the basket.
  • Examples of this situation include Norske Skog, Cumulus, J.Crew and Neiman Marcus.
  • This panel delved into the implications of these current trends.

Speakers:
James Millar, Partner, Drinker Biddle
Brendan Hayes, Managing Director, Millstein & Co.
Elliot Ganz, General Counsel, LSTA

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