Zelly

Front

What is a lock-up agreement in the context of Chapter 11 restructuring?

Back

A lock-up agreement is a contract that binds key parties to a pre-set plan, which can weaken the bargaining power of junior creditors.

Front

What percentage of commercial real estate Chapter 11 filings in 2024 were from smaller assets with less than $10 million in liabilities?

Back

33%.

Front

What was a key reason for the spin-off of PJT Partners from Blackstone?

Back

To avoid conflicts of interest.

Front

What economic factor is expected to improve the restructuring landscape in the second half of 2025?

Back

Potential decline in interest rates.

Front

True or False: The asset transfers in the Caesars case were controversial because creditors believed they left CEOC with less valuable properties.

Back

True.

Front

What is the primary purpose of Chapter 11 bankruptcy?

Back

To allow a distressed company to reorganize its debts and continue operations.

Front

Define 'junior creditors' in the context of corporate restructuring.

Back

Junior creditors are those who have a lower priority in the repayment hierarchy during bankruptcy proceedings.

Front

What is the role of senior creditors in a Chapter 11 restructuring?

Back

Senior creditors typically have priority over junior creditors in the repayment of debts and can influence restructuring plans.

Front

Explain the term 'debtor-in-possession (DIP) financing'.

Back

DIP financing is a special form of financing provided to companies in Chapter 11 bankruptcy to help them continue operations during the restructuring process.

Front

What is the significance of creditor committees in Chapter 11 cases?

Back

Creditor committees represent the interests of creditors and can influence the restructuring plan.