Simpson Thacher Attorneys Author Law360 Article on Takeaways from Recent LME Court Decisions
01.21.25
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Partners Nicholas Baker and Marisa Stavenas, and Counsel Moshe Fink, authored an article titled, “Lessons From Two New Year’s Eve Uptier Exchange Decisions,” which was published by Law360. As liability management exercises (LMEs) have continued to gain popularity among borrowers looking to improve their balance sheets, the article provided an overview of two recent court decisions relating to one type of LME: the non-pro rata uptier exchange. The piece discussed key takeaways from the decisions, including that the reliance on ambiguous or undefined language in a debt document to effectuate an LME could increase the risk of a transaction, and borrowers and lenders may want to explore alternatives when they provide preferential treatment to exchanging debt holders to avoid violating the pro rata sharing provision.
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