Reorg Blog

Americas Covenants by Reorg's review of coverage for the week ended Friday, Sept. 16, is below. This week, Americas Covenants by Reorg discussed the new secured notes issued in connection with the leveraged buyout of Citrix Systems and analyzed the aggressive restrictive payments buildup basket based on 100% of cumulative EBITDA. We also discussed NortonLifeLock’s credit agreement entered in connection with the acquisition of Avast. Although the agreement does not provide the company with excessive flexibility, it does include a mechanic that expands borrowers’ ability to carry forward unused annual capacities to the mandatory prepayment provisions. We also analyzed StoneMor’s related party transactions with...

Reorg's First Day team provides timely alerts and expert analysis of new chapter 11 cases. Each Wednesday, the First Day team publishes a weekly wrap of high-level analysis on chapter 11 filing trends. The following extract is from the weekly wrap dated September 2, 2022 -- This week is the sixth consecutive week to include a billion-dollar chapter 11 filing - this time from automotive and LED lighting manufacturer Lumileds, bringing the year-to-date count of chapter 11s involving at least $1 billion in liabilities to 15, including nine in Q3, with nearly a full month remaining in the quarter. August concluded...

From Reorg Asia’s Managing Editors || In this column, managing editors Stephen Aldred and Shasha Dai take turns writing about trends in high yield, distressed debt, restructuring and bankruptcy in major Asian markets including China, Southeast Asia, India and Australia. In a market where capital is searching for the opportunity to invest outside China real estate, Azure Power Global’s troubles serve as a reminder that good governance – or at least the appearance thereof – is vital to retaining investors. The Indian renewable energy company has held two investor calls since announcing on Aug. 5 a delay in publishing its...

Written by Shan Qureshi, Head of Legal Restructuring Innovation and Initiatives || The sanctions imposed on Russia by the U.K., U.S. and EU authorities since its invasion of Ukraine in February are the most far-reaching seen in modern times. Their effect on the loan and bond market has been extensive, creating further complexity for both lenders and borrowers in dealing with their sanctioned counterparties. An English Court last week provided useful guidance as to how companies can legally deal with sanctioned creditors when restructuring their debt. Nostrum’s scheme of arrangement used a bare trust structure to hold consideration due to...

The latest area of the legal tech landscape to experience a boom is Contract Lifecycle Management (CLM). This sector includes tools that can assist throughout the entirety of the contract lifecycle. Some providers offer an end-to-end solution, while others focus on a specific stage or stages crucial to the process. Key milestones in the lifecycle include contract creation, review, approval and execution. In this article, I will lay out four reasons why CLM is having a moment in legal tech. 1. Money Talks View Blog One reason CLM is making such an impact on the legal tech scene is the...

Since its launch in April 2021, Reorg's Americas Municipals has increased its coverage of performing, high-yield and distressed municipal borrowers to over 600 discrete obligors from its humble launch of fewer than 100. Our timing couldn’t be better. A frothy market in 2021 lifted our primary coverage and helped populate a pipeline of distress for 2022 and beyond. A good example of this continuum is a life plan community in Broome County, New York, called Good Shepherd Village at Endwell. Reorg recently moved its lifecycle on this name to stressed/distressed from performing after Good Shepherd sought a waiver this summer from bondholders...