The Windstream bankruptcy has focused much attention (including ours) on “bankruptcy hardball” and “manufactured defaults”. Last Wednesday, the LSTA hosted a webinar on those issues and how they could impact the loan market. Coincidentally, the same day, ISDA published a consultation paper proposing amendments to their Definitions that would limit the impact of “narrowly tailored credit events,” which currently trigger CDS contracts while minimizing the actual financial impact on the company.
This week we cover Regs, Analysts & Loans; February’s Secondary; Solving SOFR
This week we cover Windstream Unraveled; SOFR Takes Over SFIG Vegas
In last week’s newsletter we focused on the stunning court decision and $310 million judgment in Aurelius Capital’s suit against Windstream that led analysts to predict that Windstream would soon be forced into bankruptcy. It didn’t take long for those predictions to come true; Windstream filed on Monday.
This week we cover Bankruptcy Bombshells; LIBOR Ex Machina; Operationalizing SOFR
In the same week that the LSTA hosted its popular quarterly webinar reviewing recent bankruptcy decisions, the US Supreme Court and a New York District Court were busy weighing in on other cases that could have significant implications for the loan market.
An LSTA webcast last week (“Out of Court Restructurings Through Credit Agreement Buckets”) detailed situations in which borrowers used credit agreement or indenture buckets to facilitate creative restructurings that may not have been aligned with lenders’ expectations. We noted then that the panel was timely and events this week certainly confirmed that view.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.