DOCSLIB.ORG

Oppormunities in Chapter 9: What Distressed Investors Should Know?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Oppormunities in Chapter 9: What Distressed Investors Should Know? OpporMUNIties in Chapter 9: What Distressed Investors Should Know? The Bond Buyer California Public Finance Conference October 18, 2012 Lewis Feldman Partner, Goodwin Procter LLP Emanuel Grillo Partner, Goodwin Procter LLP Chief Judge Christopher Klein U.S. Bankruptcy Court for the Eastern District of California William Nolan Senior Managing Director – Corporate Finance, FTI Consulting Municipal Bankruptcies: Chapter 9 Filings Cities, towns and counties are shown in red. Utility authorities and other municipalities are displayed in black. NORTH WASHINGTON DAKOTA MONTANA NEW HAMPSHIRE MINNESOTA VERMONT MAINE $ WISCONSIN SOUTH $ DAKOTA OREGON IDAHO WYOMING MICHIGAN NEW YORK $ $ IOWA NEBRASKA $ $ $ MASSACHUSETTS ILLINOIS INDIANA OHIO PENNSYLVANIA NEVADA $ NEW JERSEY RHODE ISLAND UTAH COLORADO $ CONNECTICUT KANSAS WEST $ VIRGINIA DELAWARE IOWA KENTUCKY VIRGINIA MARYLAND CALIFORNIA $ $ $ DISTRICT OF NORTH TENNESSEE COLUMBIA $ OKLAHOMA $ CAROLINA ARKANSAS ARIZONA NEW MEXICO $ SOUTH$ $ CAROLINA GEORGIA $ TEXAS $ MISSISSIPPI ALABAMA LOUISIANA FLORIDA Source: Governing. This map shows all municipalities filing for Chapter 9 bankruptcy protection since 2010, along with local governments voting to approve a bankruptcy filing. Information current as of September 11, 2012. MUNICIPAL BANKRUPTCIES: CHAPTER 9 FILINGS Cities, towns and counties are shown in red. Utility authorities and other municipalities are displayed in black. Source: Governing. This map shows all municipalities filing for Chapter 9 bankruptcy protection since 2010, along with local governments voting to approve a bankruptcy filing. Information current as of September 11, 2012. Legend: Alabama California Jefferson County Mendocino Cost Recreation and Park District Status: Filed for bankruptcy Fort Bragg, CA Date: 11/9/2011 Status: Filed for Bankrupcy Debt or Deficit Amount: More than $4 billion Date: 12/29/2011 The county has laid off about 500 workers since declaring for bankruptcy in November 2011. A federal judge ruled in March Stockton that the bankruptcy was allowed under state law. Status: Filed for bankruptcy Date: 6/28/2012 Arkansas Debt or Deficit Amount: $26 million Centerton Municpal Property Owners’ Improvement Stockton, Calif., filed for bankruptcy after being unable to reach District No. 3 – Versailles an agreement with its creditors. The city must pay steep Fayetteville, AR pension and payroll costs while taking in less money from Status: Filed for bankruptcy property taxes. Date: 10/12/2011 Mammoth Lakes Sylamore Valley Water Association Public Facilities Board Status: Filed for bankruptcy of Izard County Date: 7/3/2012 Mountain View, AR Debt or Deficit Amount: $43 million Status: Filed for bankruptcy Mammoth Lakes, a small California resort town, voted to file for Date: 4/19/2012 bankruptcy July 3. The city has been unable to pay a $43 million legal judgment resulting from a 1997 property development dispute. MUNICIPAL BANKRUPTCIES: CHAPTER 9 FILINGS California (cont.) New York San Bernardino Suffolk Regional Off-Track Betting Corporation Status: Filed for bankruptcy Hauppauge, NY Date: 8/1/2012 Status: Filed for bankruptcy after initial filing in 2011 was Debt or Deficit Amount: $46 million rejected San Bernardino City Council voted to file for bankruptcy Date: 5/11/2012 protection after learning the city had only $150,000 left in its The New York State Legislature changed the state's laws to bank accounts. allow Suffolk OTB to file for bankruptcy after the agency's previous filing was rejected. Suffolk OTB, which manges six Georgia branches, reported a $5.1 million net operating loss for 2011. Hospital Authority of Charlton County Folkston, GA Oklahoma Status: Filed for bankruptcy Rural Water District No. 1, Cherokee County Date: 4/30/2012 Ft. Gibson, OK Status: Filed for bankruptcy Idaho Date: 1/23/2012 Boise County Status: Bankruptcy filing rejected Pennsylvania Date: 9/8/2011 Harrisburg Debt or Deficit Amount: $5.4 million Status: Bankruptcy filing rejected, defaulted on payments A federal judgment ordered the rural county to pay $5.4 million Date: 3/10/2012 in damages and attorney fees to developer Oaas-Laney for Debt or Deficit Amount: More than $300 million allegedly violating the federal Fair Housing Act. The county Harrisburg skipped about $5 million in debt payments in later filed for bankruptcy, but failed to prove it was insolvent. March. Much of the city's debt is related to a failed waste-to- energy plant. Lost Rivers District Hospital Arco, ID Rhode Island Status: Filed for bankruptcy Central Falls Date: 3/10/2010 Status: Filed for bankruptcy Date: 8/1/2011 Missouri Debt or Deficit Amount: $21 million of outstanding debt, plus Lake Lotawana Community Improvement District unfunded pension liabilities Lee's Summit, MO State-appointed receiver Robert Flanders filed for bankruptcy Status: Filed for bankruptcy protection and has since cut pensions for retirees. Date: 8/27/2010 South Carolina Nebraska Barnwell County Hospital Sanitary and Improvement District #512 of Douglas Barnwell, SC County Status: Filed for bankruptcy Omaha, NE Date: 10/5/2011 Status: Filed for bankruptcy Date: 11/1/2011 Bamberg County Memorial Hospital Bamberg, SC Status: Filed for bankruptcy Date: 6/20/2011 Goodwin Procter, LLP MUNICIPAL MARKET: ISSUER CONCENTRATION FIVE STATES DOMINATE THE $3.7 TRILLION MUNICIPAL BOND MARKET Of the $3.71 trillion in total outstanding debt sold, the top 10 states and their municipalities account for $2.15 trillion, or 58%. The top five states alone – California, New York, Texas, Illinois and Florida, account for almost 46 % of the entire market. Amount Outstanding Amount Outstanding Investors Investors State ($ Billions) State ($ Billions) California 585.7 Oregon 37.4 New York 373.6 Alabama 36.5 Texas 320.0 Nevada 33.4 Illinois 190.8 DC 30.5 Florida 182.5 Mississippi 26.1 Pennsylvania 148.4 Utah 24.8 New Jersey 135.5 Kansas 24.2 Ohio 113.4 Iowa 21.2 Massachusetts 107.1 Oklahoma 20.5 Puerto Rico 105.1 Nebraska 18.4 Michigan 88.7 New Mexico 17.9 Washington 83.9 Hawaii 16.5 Georgia 79.1 Rhode Island 15.0 Colorado 69.9 Montana 14.2 Virginia 66.5 Arkansas 13.0 Arizona 61.7 New Hampshire 12.2 Indiana 61.1 Alaska 11.8 North Carolina 60.3 West Virginia 11.8 Missouri 58.9 Idaho 11.5 Minnesota 55.8 Delaware 9.3 Tennessee 50.5 Maine 8.8 Maryland 50.3 South Dakota 7.8 Connecticut 47.8 Vermont 6.1 Wisconsin 47.3 North Dakota 4.1 South Carolina 40.9 Wyoming 4.0 Kentucky 38.5 Virgin Islands 2.5 Louisiana 38.3 Guam 2.0 Total (including other territories) 3,712.4 SOURCE: Bloomberg Visual Guide to Municipal Bonds, “Bloomberg Brief: Municipal Market” (June 21, 2011) MUNICIPAL BONDS OUTSTANDING IN AUGUST 2011 WHERE IS THE MONEY COMING FROM? Municipal Bonds Outstanding in August 2011: Where Is The Money Coming From? Primarily Private in Blue and Primarily Public in Green Amount Outstanding % of Outstanding % of Total Type of Revenue ($ Billions) Market Monetary Defaults State General Fund or Ad Valorem property tax (GO) 727 20 Ad Valorem property tax (school districts) 426 12 Hospital revenues 270 7 3 Water and sewer revenue 260 7 Higher education revenues 215 6 Miscellaneous taxes 204 6 Housing revenues 187 5 18 Nuclear, public power, solid waste and municipal utility 185 5 system revenues Economic or corporate-backed industrial development 134 4 9 Government-backed leases, public facility leases 128 3 Tobacco settlement 106 3 Toll-backed roads/bridges/tunnels 101 3 Airport revenues 86 2 Land-secured 62 2 33 Public transport revenues 54 1 Long-term care revenues 46 1 15 Cultural and human service provider charities 22 1 2 Other 455 12 TOTALS 3,668 100 80 SOURCE: Bloomberg Visual Guide to Municipal Bonds, “Bloomberg Brief: Municipal Market” (June 21, 2011) NUMBER OF BORROWERS WHO DEFAULTED ON MUNI BONDS AND THEIR INDUSTRY DISPERSION 2007 – 2010 Number of Borrowers Who Defaulted on Muni Bonds and Their Industry Dispersion (2007 – 2010) Primarily Private in Blue and Primarily Public in Green All Monetary and Technical Defaults: 737 Monetary Defaults: 392 % of Total Issuers / Borrowers with Monetary Issuer / Borrower Category Defaults Land-secured 33 Housing 18 Long-term care 15 Economic or corporate-backed industrial 9 development Hospitals 3 Government-backed leases, public facility leases 3 Charter schools 3 Cultural and human service provider charities 2 Universities 2 Local public utilities 2 Private schools 1 Public Education 1 Native American 1 GO 1 Public transportation 1 Toll roads/bridges/tunnels 1 Parking facilities 1 Other 3 TOTAL 100 SOURCE: Bloomberg Visual Guide to Municipal Bonds, “Bloomberg Brief: Municipal Market” (June 21, 2011) GOODWIN PROCTER MUNICIPAL BANKRUPTCY AND RESTRUCTURING Municipalities and state governments are in crisis. The prolonged economic downturn, followed by a weak economic recovery and exacerbated by the historic unwillingness of local governments to address legacy liabilities, has led many cities to seriously consider the once unthinkable prospect of municipal bankruptcy. The potential impact of municipal bankruptcies reaches far beyond the municipality itself. Unions, pension funds, bondholders and bond insurers, as well as vendors and other parties need to understand municipal bankruptcies and restructurings and how each could affect their interests. With this comes a host of legal questions and challenges. Goodwin Procter’s Public Finance and Financial Restructuring Groups have formed an interdisciplinary Municipal Bankruptcy and Restructuring Practice to advise on issues of public finance, restructurings and Chapter
Load more

Recommended publications
  • What the United States Can Learn from the New French Law on Consumer Overindebtedness
    Michigan Journal of International Law Volume 26 Issue 2 2005 La Responsabilisation de L'economie: What the United States Can Learn from the New French Law on Consumer Overindebtedness Jason J. Kilborn Louisiana State University Paul M. Hebert Law Center Follow this and additional works at: https://repository.law.umich.edu/mjil Part of the Bankruptcy Law Commons, Comparative and Foreign Law Commons, Consumer Protection Law Commons, and the Legislation Commons Recommended Citation Jason J. Kilborn, La Responsabilisation de L'economie: What the United States Can Learn from the New French Law on Consumer Overindebtedness, 26 MICH. J. INT'L L. 619 (2005). Available at: https://repository.law.umich.edu/mjil/vol26/iss2/3 This Article is brought to you for free and open access by the Michigan Journal of International Law at University of Michigan Law School Scholarship Repository. It has been accepted for inclusion in Michigan Journal of International Law by an authorized editor of University of Michigan Law School Scholarship Repository. For more information, please contact [email protected]. LA RESPONSABILISATION DE L'ECONOMIE:t WHAT THE UNITED STATES CAN LEARN FROM THE NEW FRENCH LAW ON CONSUMER OVERINDEBTEDNESS Jason J. Kilborn* I. THE DEMOCRATIZATION OF CREDIT IN A CREDITOR-FRIENDLY LEGAL SYSTEM ......................................623 A. Deregulationof Consumer Credit and the Road to O ver-indebtedness............................................................. 624 B. A Legal System Ill-Equipped to Deal with Overburdened Consumers .................................................627 1. Short-Term Payment Deferrals ...................................628 2. Restrictions on Asset Seizure ......................................629 3. Wage Exem ptions .......................................................630 II. THE BIRTH AND GROWTH OF THE FRENCH LAW ON CONSUMER OVER-INDEBTEDNESS ............................................632 A.
    [Show full text]
  • Graham & Doddsville
    Graham & Doddsville An investment newsletter from the students of Columbia Business School Inside this issue: Issue XXX Spring 2017 CSIMA ARGA Investment Management Conference P. 3 Pershing Square A. Rama Krishna, CFA, is the founder and Chief Investment Challenge P. 4 Officer of ARGA Investment Management. He was previously A. Rama Krishna P. 5 President, International of Pzena Investment Management and Managing Principal, Member of Executive Committee, and Cliff Sosin P. 14 Portfolio Manager of its operating company in New York. He led the development of the firm's International Value and Student Ideas P. 28 Global Value strategies and co-managed the Emerging Markets Chris Begg P. 36 Value strategy, in addition to managing the U.S. Large Cap A. Rama Krishna Value strategy in his early years at Pzena. Prior to joining Pzena in 2003, Mr. Krishna was at Citigroup Asset Editors: (Continued on page 5) CAS Investment Partners Eric Laidlow, CFA MBA 2017 Cliff Sosin is the founder and investment manager of CAS Benjamin Ostrow Investment Partners, LLC ("CAS"), which he launched in MBA 2017 October 2012. Immediately prior to founding CAS, Cliff was a John Pollock, CFA Director in the Fundamental Investment Group of UBS for five MBA 2017 years where he was a senior member of a team analyzing equities and fixed income securities. Prior to UBS, Cliff was Abheek Bhattacharya employed as an analyst by Silver Point Capital, a hedge fund MBA 2018 which invested in high yield and distressed opportunities, as well as by Houlihan Lokey Howard & Zukin, a leading Matthew Mann, CFA investment bank best known for its advisory services with MBA 2018 Clifford Sosin respect to companies requiring financial restructuring.
    [Show full text]
  • Ontario Superior Court of Justice Commercial List
    Court File No. CV-17-587463-00CL ONTARIO SUPERIOR COURT OF JUSTICE COMMERCIAL LIST B E T W E E N: THE CATALYST CAPITAL GROUP and CALLIDUS CAPITAL CORPORATION Plaintiffs - and - WEST FACE CAPITAL INC., GREGORY BOLAND, M5V ADVISORS INC. C.O.B. ANSON GROUP CANADA, ADMIRALTY ADVISORS LLC, FRIGATE VENTURES LP, ANSON INVESTMENTS LP, ANSON CAPITAL LP, ANSON INVESTMENTS MASTER FUND LP, AIMF GP, ANSON CATALYST MASTER FUND LP, ACF GP, MOEZ KASSAM, ADAM SPEARS, SUNNY PURI, CLARITYSPRING INC., NATHAN ANDERSON, BRUCE LANGSTAFF, ROB COPELAND, KEVIN BAUMANN, KEVIN BAUMANN, JEFFREY MCFARLANE, DARRYL LEVITT, RICHARD MOLYNEUX, GERALD DUHAMEL, GEORGE WESLEY VOORHEIS, BRUCE LIVESEY and JOHN DOES #4-10 Defendants WEST FACE CAPITAL INC. and GREGORY BOLAND Plaintiffs by Counterclaim - and – THE CATALYST CAPITAL GROUP INC., CALLIDUS CAPITAL CORPORATION, NEWTON GLASSMAN, GABRIEL DE ALBA, JAMES RILEY, VIRGINIA JAMIESON, EMMANUEL ROSEN, B.C. STRATEGY LTD. d/b/a BLACK CUBE, B.C. STRATEGY UK LTD. d/b/a BLACK CUBE, and INVOP LTD. d/b/a PSY GROUP INC. Defendants by Counterclaim Court File No. CV-18-593156-00CL B E T W E E N: THE CATALYST CAPITAL GROUP INC. and CALLIDUS CAPITAL CORPORATION Plaintiffs - and - DOW JONES AND COMPANY, ROB COPELAND, JACQUIE MCNISH and JEFFREY MCFARLANE Defendants MOTION RECORD (VOLUME III OF III) August 12, 2020 GOWLING WLG (CANADA) LLP Barristers & Solicitors 1 First Canadian Place 100 King Street West, Suite 1600 Toronto ON M5X 1G5 Tel: 416-862-7525 Fax: 416-862-7661 John E. Callaghan (LSO#29106K) [email protected] Benjamin Na (LSO#40958O) [email protected] Richard G.
    [Show full text]
  • Ares Investor Day August 12, 2021 Important Notice
    Ares Investor Day August 12, 2021 Important Notice This presentation is prepared for Ares Management Corporation (NYSE: ARES) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares Management Corporation (“Ares”) and certain of its affiliates. Any discussion of specific Ares entities is provided solely to demonstrate such entities’ role within the Ares organization and their contribution to the business, operations and financial results of Ares. This presentation does not constitute, and shall not be construed as, an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, investment funds, vehicles or accounts, investment advice, or any other service by Ares of any of its affiliates or subsidiaries. This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by Ares. This presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Forward-looking statements can be identified by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of Ares, including but not limited to the impact of the COVID-19 pandemic and the pandemic's impact on the U.S.
    [Show full text]
  • DIP Financing: a Review of Best Practices and Recent Developments - Or - the Skinny on Dips1
    DIP Financing: A Review of Best Practices and Recent Developments - or - The Skinny on DIPs1 Presented at the 43rd Annual Seminar on Bankruptcy Law and Rules, Atlanta, Georgia March 30 –April 1, 2017 Manuscript: David L. Eades Glenn Huether Moore & Van Allen, PLLC Discussion Panel: Hon. Frank J. Santoro U.S. Bankruptcy Judge Eastern District of Virginia Corali Lopez-Castro Kozyak Tropin & Throckmorton David L. Eades Moore & Van Allen PLLC 1 Sorry. 1 Introduction. If you actually read this manuscript (and, hey, you got this far), you will notice very quickly that it does not qualify as a particularly scholarly treatment of debtor in possession financing issues. I’ve cited a few cases, but only when I think they touch on an interesting or unresolved issue. On the other hand, I’ve also tried not to insult your intelligence or experience with a manuscript that assumes you’ve never seen a DIP loan before. If I drafted this with anyone particular in mind, it was the lawyer who has been involved in several DIP lending situations and knows he/she will be again, but who also is capable at times of forgetting some basic points and of missing some recent developments. In other words, I drafted it for lawyers like me. I hope it helps.2 The Statutory Framework. In the previous millennium, when I was a young lawyer, one old partner at our firm had one constant mantra: Re-read the statute, and re-read the rules - every time. He was didactic, maybe even a little bit batty about it (he said it pretty much every day), but he was right.
    [Show full text]
  • Prospectus Carlyle Tactical Private Credit Fund Shares
    PROSPECTUS CARLYLE TACTICAL PRIVATE CREDIT FUND SHARES OF BENEFICIAL INTEREST Class A Shares Class I Shares Class L Shares Class M Shares Class Y Shares April 30, 2020 Carlyle Tactical Private Credit Fund (the “Fund”) is a recently organized Delaware statutory trust that is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, closed-end management investment company that is operated as an interval fund. The Fund is offering through this prospectus five separate classes of shares of beneficial interest (“Shares”) designated as Class A (“Class A Shares”), Class I (“Class I Shares”), Class L (“Class L Shares”), Class M (“Class M Shares”) and Class Y (“Class Y Shares”). The Fund offers Class N Shares through a different prospectus. Investment Objective. The Fund’s investment objective is to produce current income. The Fund seeks to achieve its investment objective by opportunistically allocating its assets across a wide range of credit strategies. There can be no assurance that the Fund will achieve its investment objective. Interval Fund. The Fund is designed primarily for long-term investors and not as a trading vehicle. The Fund is an “interval fund” (defined below) pursuant to which it, subject to applicable law, will conduct quarterly repurchase offers for between 5% and 25% of the Fund’s outstanding shares of beneficial interest (“Shares”) at net asset value (“NAV”). In connection with any given repurchase offer, it is likely that the Fund may offer to repurchase only the minimum amount of 5% of its outstanding Shares. It is also possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their Shares repurchased.
    [Show full text]
  • Distressed Lending Beyond the Bank Loan Portfolio
    MAY/JUNE 2020 Distressed Lending Beyond the Bank Loan Portfolio Page 20 Understand your cybersecurity risk. Gain a trusted cybersecurity advisor and ensure your ISP is well-managed with CONSULTING services. Receive personalized NETWORK SECURITY testing tailored to your size and complexity. Go beyond a checklist with a risk-based IT AUDIT, reviewing for compliance and adequacy. Participate in uniquely designed, role-based, industry- specific cybersecurity EDUCATION. Contact David Edwards 913-225-6382 | [email protected] www.sbscyber.com Solutions that work for you. LENDING SERVICES INVESTMENT PRODUCTS 1 Bank Stock Loans — Acquisition, Capital Injection, Municipal Bonds and Shareholder Buy Back/Treasury Stock Purchase Mortgage-Backed Securities Officer/Director/Shareholder Loans ( Reg-O) Govt. & Agency Bonds Participation Loans Purchased/Sold — Commercial, Corporate Bonds Commercial Real Estate, Agricultural, and Brokered CDs Special Purpose Loans Money Market Instruments Leases Structured Products Equities OPERATIONAL SERVICES Mutual Funds Midwest Image Exchange – MIE.net™ ETFs Electronic Check Clearing Products 1 Information Reporting – CONTROL FINANCIAL SERVICES 1 Electronic Funds – Wire Transfers/ACH Investment Portfolio Accounting Risk/Fraud/Anomaly Detection Tools Portfolio Analytics Cash Management and Settlement Interest Rate Risk Reporting Federal Funds and EBA Asset/Liability Management Reporting Certificates of Deposit Municipal Credit Reviews International Services/Foreign Exchange International Services/Foreign Exchange Balance Sheet Policy Development & Review Safekeeping 1 Investment Products and Financial Services offered thru AUDIT SERVICES 1 Investment Products and Financial Services offered thru First Bankers’ Banc Securities, Inc. MEMBER FINRA & SIPC Audit Services provided by MIB Banc Services, LLC, a subsidiary of our holding company. INVESTMENTS ARE NOT FDIC INSURED, NOT BANK GUARANTEED & MAY LOSE VALUE.
    [Show full text]
  • Fordham Journal of Corporate & Financial
    Fordham Journal of Corporate & Financial Law Volume 15 Issue 1 Article 7 2010 Backdoor Bailout Disclosure: Must The Federal Reserve Disclose The Identities Of Its Borrowers Under The Freedom Of Information Act? Alexander Sellinger Follow this and additional works at: https://ir.lawnet.fordham.edu/jcfl Recommended Citation Alexander Sellinger, Backdoor Bailout Disclosure: Must The Federal Reserve Disclose The Identities Of Its Borrowers Under The Freedom Of Information Act?, 15 Fordham J. Corp. & Fin. L. 259 (2009). Available at: https://ir.lawnet.fordham.edu/jcfl/vol15/iss1/7 This Note is brought to you for free and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Journal of Corporate & Financial Law by an authorized editor of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact [email protected]. Backdoor Bailout Disclosure: Must The Federal Reserve Disclose The Identities Of Its Borrowers Under The Freedom Of Information Act? Cover Page Footnote J.D. Candidate, 2010, Fordham University School of Law; B.A., 2007 University of Virginia. The author is deeply indebted to Prof. Caroline Gentile for her guidance, insight and patience with this Note. He is also grateful for the hard work, honest feedback, and input of fellow members of the Journal of Corporate & Financial Law, especially Noe Burgos, Nicole Conner and Gary Varnavides. This note is available in Fordham Journal of Corporate & Financial Law: https://ir.lawnet.fordham.edu/jcfl/vol15/iss1/ 7 NOTES BACKDOOR BAILOUT DISCLOSURE: MUST THE FEDERAL RESERVE DISCLOSE THE IDENTITIES OF ITS BORROWERS UNDER THE FREEDOM OF INFORMATION ACT? Alexander Sellinger* I.
    [Show full text]
  • TPG Specialty Lending, Inc. (Exact Name of Registrant As Specified in Charter)
    Table of Contents As filed with the Securities and Exchange Commission on March 4, 2014 Securities Act File No. 333-193986 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-2 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ☐ Pre-Effective Amendment No. 1 ☒ Post-Effective Amendment No. ☐ TPG Specialty Lending, Inc. (Exact Name of Registrant as Specified in Charter) 301 Commerce Street, Suite 3300 Fort Worth, TX 76102 (Address of Principal Executive Offices) (817) 871-4000 (Registrant’s Telephone Number, including Area Code) David Stiepleman c/o TPG Specialty Lending, Inc. 345 California Street, Suite 3300 San Francisco, CA 94104 (Name and Address of Agent for Service) WITH COPIES TO: Michael A. Gerstenzang, Esq. Stuart H. Gelfond, Esq. Adam E. Fleisher, Esq. Paul D. Tropp, Esq. Helena K. Grannis, Esq. Fried, Frank, Harris, Shriver & Jacobson LLP Cleary Gottlieb Steen & Hamilton LLP One New York Plaza One Liberty Plaza New York, NY 10004 New York, NY 10006 Telephone: (212) 859-8000 Telephone: (212) 225-2000 Facsimile: (212) 859-4000 Facsimile: (212) 225-3999 Approximate date of proposed public offering: As soon as practicable after the effective date of this Registration Statement. If any securities being registered on this form will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities Act of 1933, other than securities offered in connection with a dividend reinvestment plan, check the following box. ☐ It is proposed that this filing will become effective (check appropriate
    [Show full text]
  • Uncertainty in an Interconnected Financial System, Contagion, and Market Freezes
    Q ED Queen’s Economics Department Working Paper No. 1308 Uncertainty in an Interconnected Financial System, Contagion, and Market Freezes Mei Li Frank Milne University of Guelph Queen’s University Junfeng Qiu Central University of Finance and Economics Department of Economics Queen’s University 94 University Avenue Kingston, Ontario, Canada K7L 3N6 5-2013 Uncertainty in an Interconnected Financial System, Contagion, and Market Freezes Mei Li, Frank Milne, Junfeng Qiu∗ May 13, 2013 Abstract This paper studies contagion and market freezes caused by uncertainty in fi- nancial network structures and provides theoretical guidance for central banks. We establish a formal model to demonstrate that, in a financial system where financial institutions are interconnected, a negative shock to an individual financial institu- tion could spread to other institutions, causing market freezes because of creditors’ uncertainty about the financial network structure. Central bank policies to allevi- ate market freezes and contagion, such as information policy, bailout policy and the lender of last resort policy, are examined. Keywords: Interconnection, Market Freezes, Contagion, Financial Crises JEL Classifications: D82 G2 ∗Mei Li: Department of Economics and Finance, College of Management and Economics, Uni- versity of Guelph, Guelph, Ontario, Canada N1G 2W1. Email: [email protected]. Frank Milne: Department of Economics, Queen’s University, Kingston, Ontario, Canada K7L 3N6. Email: mil- [email protected]. Junfeng Qiu: China Economics and Management Academy, Central Uni- versity of Finance and Economics, 39 College South Road, Beijing, China 100081. Email: qiujun- [email protected]. 1 Introduction An important contagion mechanism emerged in the recent subprime mortgage crisis: with the rapid expansion of credit derivatives, financial institutions are interconnected through an increasingly complicated financial network.
    [Show full text]
  • Multiple Lenders and Corporate Distress: Evidence on Debt Restructuring Antje Brunner, Jan Pieter Krahnen
    No. 2001/04 – revised Multiple lenders and corporate distress: Evidence on debt restructuring Antje Brunner, Jan Pieter Krahnen CFS Working Paper No. 2001/04 Multiple lenders and corporate distress: Evidence on debt restructuring*¤ Antje Brunner¹, Jan Pieter Krahnen² First version: February 2001 This version: June 2006 Abstract: Multiple banking is a common characteristic of the corporate lending, particularly of mid- sized and large firms. However, if the firms are facing distress, multiple lenders may have serious coordination problems, as has been argued in the theoretical literature. In this paper we analyze the problems of multiple banking in borrower distress empirically. We rely on a unique panel data set that includes detailed credit-file information on distressed lending relationships in Germany. In particular, it includes information on bank pools, a legal institution aimed at coordinating lender interests in distress. We find that the existence of small pools increases the probability of workout success and that bargaining costs are positively related to pool size. We identify major determinants of pool formation, in particular the number of banks, the distribution of lending among banks, and the severity of the distress. JEL Classification: D74, G21, G33, G34 Keywords: Bank Lending, Bank Pool, Distress, Reorganization, Coordination Risk, Bankruptcy *This research is part of the CFS project on Credit Risk Management in Germany. We thank all participating banks for the intensive cooperation in this project. We have also benefitted from discussions with Ron Anderson, Sudipto Bhattacharya, Hans Degryse, Doug Diamond, Ralf Elsas, Karl-Hermann Fischer, Francesco Giordano, Nicolas Kiefer, Kjell Nyborg, Steven Ongena, Christine Pochet, Hyun Shin, Konrad Stahl, R.
    [Show full text]
  • 2020 Fourth Edition
    Fund Finance 2020 Fourth Edition Contributing Editor: Michael C. Mascia GLOBAL LEGAL INSIGHTS – FUND FINANCE 2020, FOURTH EDITION Contributing Editor Michael C. Mascia, Cadwalader, Wickersham & Taft LLP Senior Editors Suzie Levy Rachel Williams Sub-editor Andrew Schofield Group Publisher Rory Smith Publisher Paul Regan Creative Director Fraser Allan We are extremely grateful for all contributions to this edition. Special thanks are reserved for Michael C. Mascia for all his assistance. Published by Global Legal Group Ltd. 59 Tanner Street, London SE1 3PL, United Kingdom Tel: +44 207 367 0720 / URL: www.glgroup.co.uk Copyright © 2020 Global Legal Group Ltd. All rights reserved No photocopying ISBN 978-1-83918-020-0 ISSN 2399-1887 This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. The information contained herein is accurate as of the date of publication. Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY January 2020 CONTENTS Preface Michael C. Mascia, Cadwalader, Wickersham & Taft LLP Introduction Jeff Johnston, Fund Finance Association General chapters Hybrid and asset-backed fund finance facilities
    [Show full text]