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Pledged Equity Proxy Rights and the Rise of the Board Flip

Borrower beware: in times of distress, your credit documents may give your secured lenders an opportunity to “flip” control of your board

Distress happens, even at companies that once appeared financially solid. When it does, the company, its board (which may be controlled by a sponsor in a public or private equity scenario), and its lenders often enter into restructuring discussions in search of a consensual path forward, typically under the terms of a forbearance agreement.

USA, Company & Commercial, Insolvency & Restructuring, Weil Gotshal & Manges LLP, Bankruptcy, Private equity
Prepared Liquidation - Pre-Pack Sales Under Polish Bankruptcy Law

Amid the current market uncertainties, distressed asset sales are likely to rise. International investors are looking for efficient solutions, preferably ones that reflect solutions in their home jurisdictions. One popular mechanism is the use of pre-pack sales. A pre-pack sale manages the adverse impact of insolvency proceedings on the distressed company’s business, while reducing the time and cost of such proceedings, and offering greater asset realisation to be distributed among creditors.

Poland, Employment & Labor, Insolvency & Restructuring, Litigation, Squire Patton Boggs
Supreme Court Resolves Split on U.S. Trustee Fees

Introduction

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, US Congress, Supreme Court of the United States
In re Buffets: A Fees-t for the United States Trustee

The holidays came early for the United States Trustee (the “U.S. Trustee”) on November, 3, 2020, when a three-judge panel of the United States Circuit Court for the Fifth Circuit, on direct appeal, reversed the bankruptcy court and upheld the constitutionality of a 2017 increase to quarterly fees payable to the U.S. Trustee in Hobbs v. Buffets LLC (In re Buffets LLC), No. 19-50765, 2020 U.S. App. LEXIS 34866 (5th Cir. Nov. 3, 2020). Although the Fifth Circuit’s opinion addresses a variety of constitutional challenges to the recent increase to U.S.

USA, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Weil Gotshal & Manges LLP, Trustee, Fifth Circuit
Poland’s Simplified Restructuring Proceeding Takes Effect

As previewed in our prior post, Poland’s simplified restructuring proceeding (uproszczone postępowanie restrukturyzacyjne) is now in effect. The enabling legislation – with only minor changes from the description in our prior post affecting such restructurings – was finally adopted on 19 June 2020, signed into law on 23 June 2020 and took effect the same day.

Poland, Insolvency & Restructuring, Public, Squire Patton Boggs, Coronavirus
COVID-19: Poland’s Parliament Nears Passage of Extraordinary Debtor Restructuring Relief

Poland’s Parliament (the Sejm, the lower House of Parliament) is close to passage of an extraordinary debtor restructuring relief law as part of its fourth COVID-19 crisis legislation.

The measure, referred to as Shield Law 4.0 (Tarcza 4.0) would:

Poland, Insolvency & Restructuring, Squire Patton Boggs, Coronavirus