Reorg Blog

Germany was the first jurisdiction to act after the pandemic hit, with the introduction of new European restructuring regulations which suspended the obligation under the country’s bankruptcy code for businesses to file for insolvency within three weeks of discovering illiquidity or over-indebtedness. German lawmakers also allowed companies to hold shareholder meetings virtually, loosened the clawback and lender liability regime, and prevented landlords from terminating leases because of non-payment. Spain also suspended filing deadlines for directors whose businesses were insolvent, while France said that in its insolvency proceedings sauvegarde, redressements judiciaire, liquidations should not be treated as urgent and can be...

At the outbreak of the Covid-19 pandemic, European lawmakers raced to modify their restructuring regime in response to the crisis. On March 20, 2020, independent research group the Conference of European Restructuring and Insolvency Law (CERIL) called on all EU member states to suspend the duty of directors to file for insolvency proceedings based on over-indebtedness and inability to pay. It also urged governments to offer interim financing to struggling businesses, “hibernation” periods for small businesses and support for entrepreneurs and their staff. In the months that followed, jurisdictions across the Continent mobilized practitioners, academics and legislators to introduce a...

After completing their IPO on April 19, 2021, Applovin risk under their credit agreements has become a highly discussed topic. The software company was provided with a $1.82B term loan and a $600M revolving credit facility, both maturing in 2025 initiating our Americas Covenants team to analyze the company’s credit agreement. Our experts highlighted two covenant concepts that add to Applovin risk for investors including the aggregate basket inconsistencies and the consequences of these inconsistencies as well as the potential impact of allowing all structurally senior debt to be secured by the assets of non guarantor restricted subsidiaries. Furthermore, the...

Late on May 21, Reorg followed up earlier breaking news which revealed Sritex had appointed AJ Capital as financial advisor, replacing Helios Capital, at a first creditors meeting. Continuing a series of exclusive breaking news stories around Sritex, Reorg reported that AJ Capital had told meeting attendees it was now conducting due diligence and collecting further information for the upcoming PKPU composition plan, and critically, that creditors would be divided into five groups: Offshore and onshore syndicated lenders, bilateral lenders, MTN holders, USD noteholders, and trade vendors / suppliers. Click through to read more.