Pandemic Hope for Chapter 11 Financing
Yale Law Journal Forum, Vol. 131, p. 315, 2021
23 Pages Posted: 14 Nov 2021
Date Written: November 10, 2021
Abstract
The pandemic revealed that the increasing complexity of debtor’s capital structure could supply much-needed competition in the Chapter 11 financing market, as other inside lenders increasingly challenge a debtor’s favored inside lenders. After discussing the benefits of this surprising development, the Essay identifies several impediments and offers strategies for removing them.
Keywords: Bankruptcy, reorganization, Chapter 11, debtor-in-possession financing, DIP, COVID-19 pandemic, economic shutdown, restructuring support agreements, RSAs, fragmented capital structure, first, second & priming liens, Neiman Marcus
JEL Classification: D25, G32, G33, G38, K22
Suggested Citation: Suggested Citation