German real estate group restructuring plan sanctioned in London

Having failed to get its restructuring solution through in its home jurisdiction, beleaguered German real estate group, Adler, turned to London. After substituting a UK plc as issuer of six series of notes in order to propose an English restructuring plan, and in the face of fierce opposition from an ad hoc committee of 2029 noteholders (AHG), the group successfully forced the plan through just in time.

Introducción

Este mes destacamos especialmente dos resoluciones judiciales recaídas en relación a dos planes de restructuración: (i) una es la sentencia de la audiencia provincial de la Coruña que resuelve sobre la impugnación del plan de XELDIST cuya homologación fue tan discutida por su peculiar formación de clases (4 de 8 de ellas eran unipersonales) (ii) otra la homologación del plan de SINGLE HOME que sale adelante con el voto favorable tan solo de la clase de los especialmente relacionados.

Introducción

En este mes comienzan a publicarse algunas resoluciones interesantes en aplicación de la Ley 16/2022 en relación a planes de restructuración y nombramientos de experto. En este campo preconcursal tan de moda son especialmente reseñables:

As the economic headwinds indicate that borrowers will continue to face financial pressures in 2023 and beyond, lenders are seeking ways to exercise more leverage as “covenant-lite” facilities prevail. Material adverse change clauses in finance documents UK and US perspective By Olga Galazoula, Jacques McChesney and Charlotte Harvey 4 FUNDS INSIDER FUNDS INSIDER 5 The event relied upon by the lender to enforce this clause was the making of an arbitration award that could potentially result in significant damages being awarded against the borrower.

Spanish Insolvency Law 16/2022

WE CONSIDER BELOW THE SHARE CHARGE ENFORCEMENT OPTIONS FOR PRIVATE CREDIT LENDERS, WHO MAY NOW COME TO PREFER 'APPROPRIATION' AS THE LESS FORMAL, MORE IMMEDIATE 'LOAN-TO-OWN' TOOL TO SOLVE FOR BORROWER JV DISPUTES, BREAK SHAREHOLDER DEADLOCKS, AND AS A PROACTIVE MEANS TO PRESERVE VALUE IN A CREDIT.

GIVEN THE RECENT NEWS REGARDING SILICON VALLEY BANK, RICHARD OMAN LOOKS AT THE IMPACT THAT LENDER INSOLVENCY HAS ON LOAN FACILITIES AND WHAT BORROWERS AND LENDERS NEED TO CONSIDER.

BACKGROUND

KARL CLOWRY, SEÁN MCGUINNESS, AND AZIZ ABDUL LOOK TO THE LESSONS FOR SHAREHOLDERS, CREDITORS AND ADMINISTRATORS FROM THE FIRST CREDITOR LED RESTRUCTURING PLAN.

The Good Box Co Labs Limited (in Administration) case demonstrates once more the viability of the process for the mid-market and continues a trend of RPs being used by a determined creditor / shareholder constituency to rescue an equity investment within an existing corporate group. In short, the mid-market RP is still a highly situational, albeit flexible, tool."

Introducción

Este mes las resoluciones reseñadas son menos y de menor relevancia que el mes pasado. Destacamos en todo caso el auto de homologación de uno de los primeros planes de restructuración aprobados tras la entrada en vigor de la nueva ley 16/2022 con una peculiar formación de clases donde muchas de ellas son clases unipersonales.

También destacamos un auto del Juzgado de lo Mercantil número 3 de Gijón que niega el embargo preventivo de los bienes de los administradores de la concursada por no apreciarse que vaya a existir un déficit concursal.

An administration is intended to achieve one of two objectives: 1. to rescue the company as a going concern; or 2. to achieve a better result for the company's creditors as a whole than would be likely if the company was placed into liquidation