dear distressed debt and special sits community: can you stop coming up with lame terms like 'hunter gatherer' to try to make things like moving collateral and doing a bond exchange sound edgy and exciting? thx.

1L loan recoveries at 42% LTM vs 64% historically. Even worse for 2L at 20%.

Loan-only borrowers the main culprit.

Ouch.

The bankruptcy bench loses a legend. I had the privilege of appearing before Judge Carey in practice and I was always deeply impressed by his thoughtful administration of lsrge bankruptcy cases.

With the SBF sentencing coming up and a new examiner in the FTX bankruptcy, this new article by LipsonLaw and me may be of interest.
papers.ssrn.com/sol3/papers.cf…

Prof. George Triantis, leading scholar in contracts and business law, has been appointed dean of Stanford Law School. He will assume his new position on June 17.
stanford.io/3TnehHH

Conference Announcement: We will host the second annual Harvard-Wharton Insolvency & Restructuring Conference for academic works-in-progress in debt, restructuring and bankruptcy on September 20-21, 2024.

hls.harvard.edu/harvard-wharto…

Hope to see some of you there!

I remember thinking that Delaware's lead in Chapter 11 restructurings was insurmountable ... but then came Judge Jones and the rise of Houston and its law firms and judges as a bankruptcy center.

ft.com/content/2dff82…

Spirit Airlines engaged Davis Polk and Perella Weinberg Partners for debt talks with bondholders, Reorg first reported yesterday and two weeks ago $SAVE

Listening to Jared Ellias talk about his current work. Bankruptcy trauma is real. Jared’s work is fascinating.

Quick pitch: as contracts evolve they become more complex, but the complexity gives rise to loopholes. Please check it out!

Compared to the bookkeeping at FTX, this seems pretty good!

We take on Disqualified Lender provisions.

We were shocked by what we learned,

Not only are distressed investors targeted but usually weeks if not months after a trade occurs.

Serta, Packers and Bijyu's are the latest examples of a troubling trend.

Read what Contributors…

Shame on them if they do an in-person closing for this deal.

Mark-to-Elon accounting...

Interesting insight --> the primary loan market is demanding protection against aggressive uptier transactions even after a deal launches.

Tell us what you think?

with credit to CreditSights

🚨JMP THREAD ALERT🚨

I study the transformation of the U.S. Consumer Credit Industry from a retailer-funded model to a bank-funded model from 1950 to today. Why might we want to fund consumer credit with banks vs. stores? Well, in short, it helps small businesses!

Gannon is saying that SCOTUS can invalidate the Purdue settlement and the Sacklers will show back up with more money - so SCOTUS has two options here:

1) Uphold the bankruptcy settlement;
or
2) Overturn it and get more money for tort victims.

Based on the >Alito< question, bankruptcy could get major question'd!

(Deleted prior Tweet where I mis-identified Justice Alito as Justice Roberts)