COVID-19 M&A Lessons
Includes developments in relation to: ESG; CRR; COVID-19; IFPR; Basel III; Securitisation Regulation; LIBOR; and EMIR.
Click on the headings below to access each section:
HEADLINES
On May 6, 2020, in the case of In re Peabody Energy Corporation, 958 F.3d 717 (8th Cir.), the U.S. Court of Appeals for the Eighth Circuit held, in an apparent case of first impression, that state statutory and common-law climate change tort claims are dischargeable in bankruptcy and were in fact discharged in this case, affirming the decisions of the lower courts.1
Developers and other sellers of electricity have traditionally viewed utilities as creditworthy counterparties. Utilities are longstanding institutions that provide a public service and receive a regulated rate of return.
Climate change, and the resulting legal and regulatory responses, however, are beginning to change the core business model of utilities. These changes have the potential to affect the structure of the wholesale electricity market and drastically impact sellers, particularly renewable generation developers.
Well, it was only a matter of time before renewable energy hit the mainstream. By which we mean that the bloom comes off the road as the rubber hits the rose.
THE BRIEF
FINANCIAL SERVICES LITIGATION QUARTERLY
FALL 2023
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TABLE OF CONTENTS
Were There Underwriting Requirements for PPP Loans After All? The Sound-Value Requirement May Pose Risk for PPP Lenders
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Noteworthy10
District Court Upholds New ERISA Rules on ESG Investing
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Fourth Circuit Holds That Class-Action Waivers Must Be Addressed Before Class Certification
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Ninth Circuit: Fees for Claims-Made Settlements Must Be Based on Actual Recovery
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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.
European leveraged finance markets paused for breath in 2022, due to rising interest rates, volatile geopolitics and a tightening of financial markets across the board—but what can we expect in 2023?