Nutter’s Distressed Debt team advises on all aspects of leveraged transactions including documenting, enforcing, and restructuring senior, subordinated, secured and unsecured loans. We also advise clients active in buying, selling, and managing distressed debt assets in the robust middle market. We focus on protecting our clients’ rights in relation to borrowers and other lenders through effective inter-creditor agreements, agreements among lenders (AAL) and other documentation, as well as representing creditors in bankruptcy proceeds.
We represent hedge funds, private equity funds, brokers, asset managers, pension funds, banks, non-bank lenders and other capital providers. Our clients include opportunistic debt purchasers seeking a return on a financial investment and activist investors seeking to profit from loan-to-own strategies. We also work with registered and unregistered debt and high yield, senior loan investment funds, and money market funds. In that regard, we advise on application of the Investment Company Act to funds holding and transacting distressed debt in agency and principal transactions.
We help our clients:
- Understand debt structures and documentation to develop successful strategies given the unique facts of each transaction. With our deep experience in the middle market, we assist clients with due diligence, credit documentation review, initial investment structures and inter-creditor issues.
- Resolve intricate collateral and credit facility issues of every kind arising from complex structures, multiple lenders, distressed borrowers and unique collateral.
- Negotiate effective agreements in a variety of commercial finance transactions across all asset types including traditional asset based loans, revolving and term loans, senior loans, second lien loans, unitranche loans (first-in/last-out), mezzanine investments, multi-tranche credit facilities and other facilities.
- Assess legal risk regarding fund offering documents and advertising, investment management agreements, investment documentation, brokerage and custody arrangements, and compliance policies and procedures.
- Prepare for insolvency and bankruptcy challenges and engage during actual proceedings to protect rights and achieve strategic objectives. We help clients navigate debtor-in-possession (DIP) financing and cash collateral issues, and we advise on credit bidding and other issues arising in Section 363-sale transactions in both Chapter 11 and Chapter 7 proceedings. We also advise on out-of-court proceedings, including UCC Article 9 secured party sales, assignment for the benefit of creditors (AFBC) transactions and other out of court dispositions.
- Evaluate and implement post-transaction assessments to enable clients to strengthen core internal operations.
The Nutter Distressed Debt team is multi-disciplinary with decades of combined experience and leadership in this area. Our team members have years of experience that produce both the quality and creativity that this discipline requires. Those members practice in the following areas:
- Commercial finance
- Syndication and securitization
- Workouts, bankruptcy and restructurings
- Federal and state securities and commodities laws
- Tax and ERISA
- Derivatives (ISDA), securities lending and repurchase agreements
- Litigation analysis, strategy and prosecution