JAN/FEB 2017 VOL. 15, NO. 1
WHAT’S YOUR INTEREST IN INTEREST?
Lenders’ Rights to Post-Confirmation
Default Rate Interest
Lenders often set a default rate of interest in a loan agreement
as protection if the borrower defaults. They expect the courts
to honor the rate, but it doesn’t always happen. Attorneys
Jeffrey Wurst and Suzanne Mourad explain how conflicting
clauses in the bankruptcy code often allow the borrower to
roll back the interest rate.
BY JEFFREY WURST AND SUZANNE MOURAD,
RUSKIN MOSCOU FALTISHEK
BANKRUPTCY FILINGS DECREASE
FOR SIX TH STRAIGHT YEAR IN 2016
For the sixth straight year, fewer bankruptcy cases were
filed. American Bankruptcy Institute Executive Director Sam
Gerdano provides a more nuanced look at the patterns that
emerged in 2016 and predicts a quiet year ahead.
BY SAM GERDANO AND ED FLYNN,
AMERICAN BANKRUPTCY INSTITUTE
NEW ON THE SCENE
TEXAS CAPITAL BANK
DIVES INTO THE ABL POOL:
Capriotti and His Team from JPMorgan
Have Moved to a New Neighborhood
Deep in the heart of Texas, the ABL world is heating up.
Despite reports that the landscape is flat and banks have
become reluctant bedfellows, Chris Capriotti and two team
members from the JPMorgan ABL division moved to Texas
Capital Bank recently to ramp up its ABL division and
transform a regional bank into a national player.
BY NADINE BONNER, EDITOR
SIT DOWN, SHUT UP AND MIND
YOUR OWN BUSINESS:
Controlling Subordinate Lenders in Bankruptcy
As the senior lender, your rights to recoup your funds should
be top priority during bankruptcy proceedings. But those
pesky subordinate lenders often get in the way. Rocco I.
Debitetto explains the best way to craft an intercreditor
agreement that forces subordinate lenders to “sit down, shut
up and mind their own business” until you get paid.
BY ROCCO DEBITE TTO, HAHN LOESER
THE AMERICAN APPAREL SHOW:
A Rollercoaster Ride Through
Bankruptcy and Back Again
American Apparel isn’t the only youth-oriented retailer that
sought Chapter 11 protection in 2016, but its story is the
most dramatic. Its first bankruptcy proceedings included
a failed battle by ousted Founder and CEO Dov Charney
to regain control. Six months after exiting Chapter 11, the
company was back in bankruptcy with $30 million DIP
financing from Encina Business Capital and a $66 million
stalking horse bid from Canadian underwear manufacturer,
Gildan. Is this American Apparel’s last stand?
BY NADINE BONNER, EDITOR
RE TAIL BANKRUPTCY CASES:
A Volatile Sector Faces More Turbulence
It’s no secret that brick-and-mortar retailers are struggling
to stay in business. Stephen Selbst examines the factors
that have created the current retail crisis. He explains why
protect themselves from exposure.
BY STEPHEN SELBST, HERRICK FEINSTEIN