The first week of July has brought with it a flurry of activity in the digital asset markets – but not the type of activity that investors in the space likely hoped for.
On June 27th, Three Arrows Capital, Ltd.
Restructuring Matters
Restructuring Matters, published by Crowell & Moring LLP, focuses on legal issues related to corporate restructuring, bankruptcy, and insolvency. The blog covers topics such as personal guarantees in lending, regulatory changes affecting insolvency practitioners, significant bankruptcy cases and rulings, liability management exercises, and enforcement of laws impacting distressed companies. It also addresses sector-specific challenges, including retail bankruptcies and supply chain issues, as well as cross-border insolvency matters like Chapter 15 eligibility. The content provides updates on legal developments, court decisions, and regulatory frameworks that influence restructuring strategies and creditor protections.
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Celsius Networks’ Warnings Highlight Crypto Bankruptcy Risks
Celsius Networks (“Celsius”) became the latest cryptocurrency platform to raise market temperatures by halting all withdrawals, swaps and transfers from and between its customers’ accounts on June 12, 2022. Celsius touted a next wave of “unbanking,” operating a lending platform…
Lessons from Recent Cryptocurrency Bankruptcy Case: Cred, Inc.
Given the recent media coverage and growing concerns among investors over the risks associated with a bankruptcy filing of a cryptocurrency exchange, it feels timely to highlight some issues that arose in the Chapter 11 cases of Cred Inc. and…
The Continued Growth of Unitranche Financing
Unitranche financing began as a middle-market product, tracing its origins to the days of recovery from the global credit crisis. The credit markets re-opened with an explosion of available capital from traditional lenders, business development companies and other direct lenders.…
Contractual Ambiguity (or Not) Tested in Sears
Late last week, the District Court for the Southern District of New York provided a reminder of the importance of precise drafting. In Transform Holdco LLC v. Sears Holdings Corp. et. al., CV-05782, Doc. 20, the contractual question at issue related…
The Use of Litigation Funding in Bankruptcy
The financing of commercial litigation has grown enormously since it first appeared on the scene in the US, about 15 years ago. While still small relative to the overall US financial market, it is estimated that more than $11 billion…
Backstops Survive Another Challenge
Backstop commitments have become commonplace in large corporate bankruptcy cases – they provide certainty to the debtor that it will have the funds needed to satisfy its obligations to creditors under its plan of reorganization and that it will have…
Trends in ESG for Members of the Restructuring Community
Considerations of “environmental, social and governance” (or ESG) criteria with respect to a company’s management and operations continue to take on greater importance in lenders’ and investors’ credit and investment decisions. How a borrower or a target company measures up…
Foreign Debtors and Chapter 11 – Seeking Relief from Turbulent Skies
Foreign companies seeking to protect their overseas assets from their creditors have often turned to the United States for immediate relief under Chapter 11 of the Bankruptcy Code. Establishing jurisdiction in the US for purposes of a bankruptcy filing has…
Receivables Transactions Revisited: Recent Decisions Split on Sale vs. Loan Characterization
The merchant cash advance (“MCA”) industry recently provided two different bankruptcy courts with an opportunity to consider the characterization of MCA funding transactions as either “true sales” of receivables or “disguised loans”. [1] MCA funders typically provide cash to a…