The trading rules and conventions of the loan market are well known to its participants. Similarly, the laws and practices governing equity securities trading in the U.S. are quite familiar to securities market professionals. The opportunity for confusion may arise, however, when these two markets quickly converge—for example, when the loans of a reorganized borrower are converted into or satisfied by the issuance of equity securities.
USA, Capital Markets, Insolvency & Restructuring, Richards Kibbe & Orbe LLP, Confidentiality, Tax exemption, Bankruptcy, Debtor, Security (finance), Safe harbor (law), Insider trading, Distressed securities, Securities Exchange Act 1934 (USA), Securities Act 1933 (USA), Title 11 of the US Code