United States: Podcast - Credit Funds: Make-Wholes And Cramdowns: Understanding The Recent Second Circuit Momentive Decision

Credit funds that invest in distressed debt, whether through secondary trading or loan origination, not only must evaluate the borrower's credit quality and business plan, but, with the help of their lawyers, must also keep current on bankruptcy and appellate court decisions that bear on the interpretation and enforceability of their documents. Among the important areas that are dealt with in recent court decisions are call protection and the ability of borrowers to force debt restructurings that impair value—areas which have a direct effect on recoveries that debtholders can expect in a bankruptcy.

This is the third in a series of podcasts featuring issues of concern to credit funds, and our first of several planned on the topic of distressed debt.

Related court decisions:

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