Jeff Marwil has held lead roles in some of the highest-profile chapter 11 bankruptcy cases in America. He is the U.S. co-head of the Firm’s Business Solutions, Governance, Restructuring & Bankruptcy Group. He has a reputation for providing sophisticated advice to companies in distress.
Loan agreements and bond indentures often prohibit a borrower or issuer from prepaying a loan or bond prior to its stated maturity without paying a “makewhole premium” or “redemption.
Takeaways - “Make-wholes” one-off payments required if debt is prepaid or, in certain cases, otherwise accelerated have generated litigation, with debtors contending.
One year ago, we wrote that, unlike in 2019, when the large business bankruptcy landscape was generally shaped by economic, market, and leverage factors, the COVID-19 pandemic dominated.