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Recap of LSTA’s Fifth Installment of Recent Development in Bankruptcy Law

This week the LSTA hosted the fifth installment of our quarterly roundup of Recent Developments in Bankruptcy Law.  Rich Levin of Jenner & Block once again focused on a number of recent key cases for loan market participants.  The most important issue covered was the recent Supreme Court decision in In re Jevic where the Court ruled that non-consensual structured dismissals that distributed an estate’s property in violation of the absolute priority rule are prohibited.

In re Jevic: The Supreme Court Reaffirms the Absolute Priority Rule

Last week, in In re Jevic, the U.S. Supreme Court reaffirmed the most fundamental principle in bankruptcy – the absolute priority rule – while at the same time recognizing that flexibility in the bankruptcy process itself is essential.  It was a very important win for secured lenders.

Supreme Court: Absolute Priority Rule Applies Absolutely

Yesterday, in In re Jevic, a case of enormous importance to the loan market, the U.S. Supreme Court ruled 6-2 that non-consensual “structured dismissals” that distribute estate assets in violation of the “absolute priority rule” are not permitted under the bankruptcy code.  The decision underscores the importance of the absolute priority rule as a bedrock principle of U.S. bankruptcy, a principle that is at the heart of secured lending.

Amicus Roundup: On a Winning Streak

In the past year the LSTA weighed in as amicus curiae (friend of the court) in four cases of enormous importance to the loan market.  Happily, the results in the two cases decided so far have been decidedly good.  The two other cases have been fully briefed and argued and await decision in the next few months. The cases are recapped below.

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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.

LSTA Newsletter – January 17, 2020

A short one this week: one article on the borrower’s arguments for “hardwired” LIBOR fallbacks, and another article on the latest in what the LSTA is doing in the ESG space. Oh–and a friendly reminder to treat MLK Day as a holiday for delayed comp purposes.

LSTA’s Recap of Brexit: Britain To Withdraw

Today, the LSTA hosted a webinar, “Brexit: Britain to Withdraw on January 31st”, presented by Clifford Chance Partner, Simon Crown. The UK has been stuck in a holding pattern since the 2016 Brexit referendum, but that was broken by the results of the UK’s General Election, which took place on December 12th, when the UK’s Conservative Party were returned to government with a strong majority in the House of Commons.