Post-Reorganization Equity Trading

In conjunction with the Business Transactions and Regulatory & Compliance Groups, SRZ’s Distressed Debt & Claims Trading Group guides clients through the oft-novel intricacies of trading and settling post-reorganization equity trades. Many compliance and logistical considerations can affect the liquidity and settlement of securities when a company issues new equity under a Chapter 11 plan, an English law scheme of arrangement, or another form of restructuring. The new equity holders (who are often debt traders), the reorganized company, and transfer agents, will often be unaccustomed to settling post-reorganization equity trades, and unfamiliar with the governing terms of the new equity instruments or the provisions in the underlying stockholders’ agreement. The group’s attorneys understand the unique issues facing the various parties in settlement of post-reorganization equity transactions and will work with them and their respective advisers to establish consensus on all necessary transfer documents and steps, including, if required, any securities law opinions.