2020 Dechert Distressed Investing Forum
November 12, 2020
This virtual program featured multiple panel discussions on opportunities for distressed investors in the United States, Europe and emerging markets.
AGENDA
10:00 a.m. – Welcome Remarks
- Allan Brilliant, Partner, Dechert LLP
10:15 a.m. – Turbulence in the Travel and Hospitality Industry
COVID-19 is decimating the travel and hospitality industries. With business and recreational travel dramatically reduced, a number of airlines, travel agencies, cruise lines, car rental companies, casinos, restaurant chains and hotels have defaulted on their debt or been forced into bankruptcy. Given the expected continued effect of COVID-19, 2021 is likely to be an even more challenging year for hospitality and travel. Join our panel of travel and hospitality industry investors, distressed investors and investment bankers as they discuss the outlook for the industry, challenges in valuing businesses and attracting capital, availability of rescue and DIP financing, and unique issues facing the industry in connection with in- and out-of-court restructurings, foreclosures and bankruptcies.
Moderator
- Allan Brilliant, Partner, Dechert LLP
Panelists
- Embree C. “Chuck” Bedsole, Senior Managing Director, Ankura
- Charles Edelman, Head of Mergers & Acquisitions and Financial Restructuring, Cantor Fitzgerald
- Spencer Marsden, Managing Director, Certares Management LLC
- Andrew Shannahan, Partner, Knighthead Capital Management LLC
11:10 a.m. – Break
Merit, Tribune and Greektown – How Safe is the Harbor?
- Shmuel Vasser, Partner, Dechert LLP
11:30 a.m. – Hot Topics in Cross-Border Restructurings
In the last few years, many distressed companies located in the emerging markets filed to restructure their debts under their local laws and thereafter sought recognition of the local restructurings in the United States and United Kingdom. Since the UK Court’s groundbreaking decision in International Bank of Azerbaijan, the restructuring of English law-governed debt outside of UK Courts has become more difficult. Moreover, the lack of global reach – and inability to obtain anything akin to a DIP financing in many foreign jurisdictions – has forced companies to consider restructuring in the U.S. through Chapter 11 rather than through proceedings in their home countries. Our panel of emerging market distressed fund managers and investment bankers will discuss these issues and other current hot topics relevant to the many multinational companies that will require restructurings, including amendments to bankruptcy laws, choice of venue, enforcement in other jurisdictions and availability of DIP financing. The panel will also explore issues related to the plethora of sovereign defaults and restructurings that have occurred in the last year.
Moderator
- Solomon Noh, Partner, Dechert LLP
Panelists
- Tim Alexander, Senior Managing Director - Head of Strategy, Ardent Financial
- Alastair Goldrein, Partner, Dechert LLP
- Justin Holland, Managing Director, DC Advisory
12:20 p.m. – Break
The Protecting Employees and Retirees in Business Bankruptcies Act of 2020 proposed by the House Judiciary Committee
- Craig Druehl, Partner, Dechert LLP
12:30 p.m. – When a Pro Rata Share is not Enough: Intra-Creditor Disputes
In the last two years disputes between creditors holding the same securities have become commonplace. Debtors have been trying to utilize “loopholes” in their debt documents to effectuate out-of-court restructurings where only a portion of the creditors holding a particular security are given an opportunity to exchange debt for new debt on more favorable terms, in exchange for waiving or loosening covenants or other considerations. Although these tactics were controversial, coercive exchange offers were commonplace with bonds. It was generally thought that sharing provisions and other covenants in bank debt prohibited such transactions. Recently, however, debtors have been seeking to exploit perceived loopholes by effecting non-pro rata exchanges. These out-of-court restructurings, as well as discriminatory DIP financings and non-pro rata equity rights offerings, have changed the expectation that all similarly situated creditors will be treated the same regardless of the size of their holdings and led to significant intra-creditor litigation. Our panel of legal experts, fund managers and investment bankers will discuss the legal and practical ramifications of such transactions on the restructuring market generally as well as with respect to individual credits.
Moderator
- G. Eric Brunstad Jr., Partner, Dechert LLP
Panelists
- Dan Gropper, Managing Partner and Chief Investment Officer, Carronade Capital Management, LP.
- Jeffrey Katz, Partner, Dechert LLP
- Homer Parkhill, Managing Director, Co-Head of North America Restructuring, Rothschild & Co.
- Garrick Stannard, Portfolio Manager, Sound Point Capital Management, LP
For questions, please contact Emily Harrington.
Related Professionals
