The Distressed Debt & Claims Trading Group advises buyers and sellers on all aspects of bankruptcy claim trading transactions ranging from bilateral transfers to complex multi-party claims auctions. The group’s attorneys structure, prepare and negotiate the transaction documents, review and analyze the underlying proofs of claim and supporting documentation and file any transfer notices. Our lawyers expertly address the various risk silos that can impact claims trades, including notional, recovery and counterparty risk, to meet our clients’ requirements. The group guides each client’s understanding of the critical terms of the trade to be negotiated at each step of the deal process in order to maximize leverage.
Club Syndications of Claims
We regularly advise clients in structuring and participating in club syndication deals and joint-venture claim participations. We negotiate and structure each transaction step to appropriately address recovery, notional amount, and counterparty credit risk, voting, control and information rights.
Leverage Opportunities
We design structures that enable our clients to leverage their bankruptcy claims positions. In conjunction with SRZ’s Finance and Structured Products & Derivatives Groups, we advise clients on leverage opportunities where the clients’ claims serve as collateral for a loan or structured product. Using a cross-departmental approach, our lawyers analyze the underlying claims and any transfer documents to protect our client’s interests and simultaneously achieve the best possible financing terms.
Claims Trade Auctions
We advise sellers and buyers in auctions of bankruptcy claims. For sellers, the group’s attorneys prepare bid documentation, collect bids, assist our clients in evaluating bids, and guide our clients through every stage of the bidding and settlement process. When acting for buyers, we analyze and advise on issues relating to the underlying claim documentation and negotiate claims transfer documentation.