Rights Offerings in Chapter 11 Bankruptcies (Volume 36, Number 7 July 2020)
Author: James J. Mazza, Jr..; Zahed A. Haseeb.
Source: Volume 36, Number 07, July 2020 , pp.77-86(10)
Abstract:
Rights offerings are an important way for injecting capital into reorganizing businesses and can play an important role in the chapter 11 plan confirmation process. In this article, the authors describe rights offering strategies from debtor and creditor perspectives, the details of rights offerings in practice, including backstop commitments, and registration exemptions. They close with case studies examining in detail some of the challenges faced by debtors in having rights offerings approved.Keywords: Rights Offerings in chapter 11; Structure, Documentation, and Approval Process; Backstop Commitments; Registration Exemptions; Peabody Energy; SunEdison; Pacific Drilling
Affiliations:
1: Skadden, Arps, Slate, Meagher & Flom; 2: Skadden, Arps, Slate, Meagher & Flom.