Bankruptcy Financing Becomes New Front for Lender Battles, Law360

Partner Andrew Gallo spoke with Law360 for an article discussing how lender disputes that were once handled out of court are increasingly surfacing in Chapter 11 proceedings, as companies propose financing deals that favor certain creditors through aggressive liability management tactics. This shift is driving more infighting among lenders and forcing bankruptcy courts to address unequal treatment and controversial “uptiering” strategies within debtor-in-possession financing.

“As lenders have become more accustomed to [liability management exercises], they’re more willing to consider non-pro rata sharing in multiple contexts,” noted Andrew.

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