Distressed Debt and Claims Trading
Overview
Crowell & Moring is recognized internationally as a leader in distressed debt industry developments and legal practices. By representing many of the original investors who pioneered trading in the distressed bank loan market, we helped create documentation, standards and customs that were adopted by the entire secondary loan trading marketplace. Our experience representing hedge funds, investment banks, CLO managers and other financial institutions in all aspects of loan and claims trading gives our lawyers a unique understanding of the legal issues and commercial complexities that underpin the market.
Contacts
Insights
Client Alert | 11 min read | 07.22.24
In the ever-evolving landscape of English law credit agreements in the European leveraged loan market, the dynamics of lending have undergone significant transformations in the last few years. One issue that has gained prominence is the increase in limits on the ability of lenders to transfer their loans and the associated restrictions imposed on potential new lenders. European syndicated loan agreements have historically included a standardised and expected set of transfer restrictions applicable to prospective lenders, reflective of the market guidance and templates issued by the Loan Market Association (“LMA”). Certainty of terms and the capability of an existing lender to sell out of a loan position have been the hallmark (and expectation) of the LMA loan market. However, trends in the drafting of credit agreements have contained a concerning increase in limitations on loan liquidity. As a result, many lenders are finding it difficult to sell their distressed loans. This article explores these trends, as well as their implications on the secondary loan trading market.
Client Alert | 4 min read | 08.18.23
Change Is a Coming: The Financial Services and Markets Act 2023
Client Alert | 3 min read | 07.26.23
Client Alert | 3 min read | 09.15.21
The Problem of “Debtor-Creditor” Language when Selling Loans by Participation
Insights
Professionals
Insights
Client Alert | 11 min read | 07.22.24
In the ever-evolving landscape of English law credit agreements in the European leveraged loan market, the dynamics of lending have undergone significant transformations in the last few years. One issue that has gained prominence is the increase in limits on the ability of lenders to transfer their loans and the associated restrictions imposed on potential new lenders. European syndicated loan agreements have historically included a standardised and expected set of transfer restrictions applicable to prospective lenders, reflective of the market guidance and templates issued by the Loan Market Association (“LMA”). Certainty of terms and the capability of an existing lender to sell out of a loan position have been the hallmark (and expectation) of the LMA loan market. However, trends in the drafting of credit agreements have contained a concerning increase in limitations on loan liquidity. As a result, many lenders are finding it difficult to sell their distressed loans. This article explores these trends, as well as their implications on the secondary loan trading market.
Client Alert | 4 min read | 08.18.23
Change Is a Coming: The Financial Services and Markets Act 2023
Client Alert | 3 min read | 07.26.23
Client Alert | 3 min read | 09.15.21
The Problem of “Debtor-Creditor” Language when Selling Loans by Participation
