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Skip to content MenuCurrent Page:HomePracticeContactFinance & Bankruptcy Law BlogUp-to-date Information on Finance, Bankruptcy, & Creditors RightsThe Role of the Independent Director in a RestructuringBy Justin Bernbrock & Bryan Uelk on March 23, 2022Posted in RestructuringThe practice of appointing one or more independent directors to the boards of distressed companies has not only proliferated in recent years, but has become the subject of increasing controversy. In this episode of the Restructure THIS! podcast, John Dubel discusses, among other things, the proper role of an independent director in a restructuring and weighs in on whether he believes the current independent director framework in chapter 11 is broken. In doing so, John addresses some of the most significant criticisms that have been levied against independent directors, including that independent directors often lack disinterestedness and are nothing more than “repeat players” that advocate for preordained outcomes.Continue Reading The Role of the Independent Director in a RestructuringCommunicating Distress in the Digital EraBy Justin Bernbrock & Bryan Uelk on March 15, 2022Posted in OtherDuring times of corporate uncertainty, the company’s message to customers, vendors and employees can either instill confidence or foster anxiety. This holds true more than ever in the digital and social media era. In a chapter 11 scenario, then, engaging with, rather than dodging, press calls may be the preferred approach. This provides the opportunity to craft the message as well as address misinformation from leaks.Continue Reading Communicating Distress in the Digital EraSheppard Mullin and M3 Partners Weigh In on the Potential Drivers of the Next Restructuring Cycle for the ABI JournalBy Justin Bernbrock, Bryan Uelk, Catherine Jun & Robert McLellarn on January 4, 2022Posted in RestructuringMembers of Sheppard Mullin’s Finance & Bankruptcy team recently co-authored an article entitled “When the Other Shoe Drops: Drivers of the Next Restructuring Cycle” with experts from leading restructuring advisory firm M3 Partners for the January 2022 issue of the American Bankruptcy Institute Journal. The article discusses the confluence of factors that Sheppard Mullin and M3 believe will contribute to an uptick in restructuring activity in the future, including the eventual tightening of credit markets and a variety of pre-pandemic and post-pandemic headwinds.…Continue Reading Sheppard Mullin and M3 Partners Weigh In on the Potential Drivers of the Next Restructuring Cycle for the ABI JournalSecurity-Based Swap Rules for End-UsersBy Aaron Levy & Michael O'Brien on November 3, 2021Posted in National Lenders, OtherAs of November 1, 2021, dealers in security-based swaps (“SBS”) whose dealing activity exceeds certain de minimis thresholds (e.g., gross notional amount of $3 billion for credit default SBS, $150 million for other SBS, and $25 million for SBS where the counterparty is a special entity) are required to register with the SEC as a security-based swap dealer  (“SBSD”) and to comply with the SEC’s regulations applicable to SBS.[1]  Many dealers exceeded these thresholds and filed for registration on or prior to November 1.  Other dealers who exceed these thresholds later will be required to register at a future date.…Continue Reading Security-Based Swap Rules for End-UsersNIGC Issues New Guidance on Financing Document Reviews and Declination LettersBy Christine Swanick & Wilda Wahpepah on October 7, 2021Posted in Tribal-Related FinancingThe National Indian Gaming Commission (“NIGC”) issued guidance this week for tribes and tribal lenders who submit loan documents to the NIGC for a so-called “declination letter.”  Bulletin No. 2021-4, “Submission of Loan Documents and Financing Documents for Review,” summarizes criteria the agency has developed in the last decade for determining whether loan documents constitute “management” contracts, which under federal law must be approved by the NIGC Chairman or they are void.  The Bulletin states that while the Office of General Counsel will continue to review loan documents and issue opinions as to whether the documents provide the lender with the ability to manage the gaming operation, contracts that “adhere to the principles and analyses” outlined in the Bulletin would likely receive an opinion letter that the contract does not need to be submitted for approval as a management contract.[1]…Continue Reading NIGC Issues New Guidance on Financing Document Reviews and Declination LettersSeven Commandments for the Financially Distressed CompanyBy Bryan Uelk on October 6, 2021Posted in Financial RestructuringMost restructuring professionals will tell you that there is no “typical” restructuring. That is absolutely true. Every financially distressed business is different and the character and direction of its restructuring will be highly dependent upon, among others, its capital structure, its liquidity profile, and the level of support it can build for its reorganization among key stakeholder bodies. Nevertheless, there are some important similarities in the way that any company should initially address a distressed situation. We discuss below a variety of key tasks, or “commandments,” that we recommend any company should undertake as soon as it anticipates possible financial distress.…Continue Reading Seven Commandments for the Financially Distressed CompanyLSTA Publishes Term SOFR Concept DocumentBy Michael O'Brien, Kevin Ryan & Aaron Levy on September 7, 2021Posted in Lending Updates, LIBOROn August 25, the LSTA published its Term SOFR Concept Document (the “Term SOFR Concept Document”)[1]—the latest addition to its suite of SOFR-based Concept Documents.…Continue Reading LSTA Publishes Term SOFR Concept DocumentDebt-Collection Reforms Draw Congressional Focus Post-COVIDBy Stacey Salters on August 9, 2021Posted in Coronavirus, National LendersIn April 2021, House Financial Services Committee Chair Maxine Waters (D-Calif.) introduced H.R. 2547, the “Comprehensive Debt Collection Improvement Act.” This article examines the bill’s proposed reforms, takes a closer…Continue Reading Debt-Collection Reforms Draw Congressional Focus Post-COVIDARRC Formally Recommends Term SOFRBy Michael O'Brien, Aaron Levy & Kevin Ryan on August 2, 2021Posted in Lending Updates, LIBORAs expected, on July 28, 2021, the Alternative Reference Rates Committee (ARRC) formally recommended the CME’s SOFR Term Rate.  The SOFR Term Rate is known in advance of the related interest period and provides an indicative, forward-looking measurement of SOFR based on market expectations implied from leading derivatives markets.  In this respect, the SOFR Term Rate functions in a manner similar to today’s LIBOR rates.  In contrast, the Daily Simple SOFR or Daily Compounded SOFR used for interest periods beyond overnight can only be determined in arrears.  The SOFR Term Rate thus facilitates in a significant way the transition away from the current LIBOR markets.…Continue Reading ARRC Formally Recommends Term SOFRLatest Milestone in LIBOR Replacement PassedBy Michael O'Brien & Aaron Levy on July 28, 2021Posted in Lending Updates, LIBORThis past Monday, July 26, marked passage of the most recent major milestone in the replacement of LIBOR as the benchmark USD interest rate.  Following the recommendation of the CFTC’s Market Risk Advisory Committee (MRAC) Interest Rate Benchmark Reform Subcommittee, on July 26, 2021 interdealer brokers replaced trading in LIBOR linear swaps with SOFR linear swaps.  This switch is a precursor to the recommendation of SOFR term rates.  The switch does not apply to trades between dealers and their non-dealer customers.…Continue Reading Latest Milestone in LIBOR Replacement PassedFederal Agencies Request Comments on Risk Management Guidance for Third-Party RelationshipsBy A.J. Dhaliwal & Moorari Shah on July 19, 2021Posted in OtherOn July 13, the Federal Reserve, FDIC, and OCC proposed risk management guidance to help banking organizations manage risks related to third-party relationships, including relationships with vendors, FinTech companies, affiliates, and the banking organizations’ holding companies.  The proposal is based on existing but disparate third-party risk management guidance from the three prudential regulators, and is intended to promote consistency across the banking agencies.  If finalized, it will replace the guidance that each agency has released independently.…Continue Reading Federal Agencies Request Comments on Risk Management Guidance for Third-Party RelationshipsPost navigationOlder Posts Subscribe Sheppard Mullin BlogsStay ConnectedRSSLinkedInTwitterFacebookAbout this BlogThe Finance & Bankruptcy Law Blog is designed to apprise financial institutions on the current issues that directly impact their business as well as advising on best practices to solve the multidisciplinary problems presented by business insolvencies.TopicsArchives ArchivesSelect Month March 2022 January 2022 November 2021 October 2021 September 2021 August 2021 July 2021 June 2021 April 2021 March 2021 February 2021 January 2021 December 2020 October 2020 September 2020 July 2020 June 2020 May 2020 April 2020 March 2020 November 2019 August 2019 January 2019 December 2018 August 2018 October 2017 June 2017 March 2017 November 2016 July 2016 June 2016 May 2016 April 2016 June 2015 April 2015 March 2015 December 2014 October 2014 August 2014 May 2014 April 2014 March 2014 February 2014 September 2013 August 2013 June 2013 May 2013 April 2013 March 2013 June 2012 October 2011 August 2011 June 2011 May 2011 April 2011 February 2011 October 2010 September 2010 August 2010 May 2010 April 2010 March 2010 February 2010 October 2009 September 2009 August 2009 July 2009 April 2009 February 2009 January 2009 December 2008 October 2008 July 2008 May 2008 March 2008 February 2008 September 2007 August 2007 June 2007 April 2007 March 2007 January 2007 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 Recent UpdatesThe Role of the Independent Director in a RestructuringCommunicating Distress in the Digital EraSheppard Mullin and M3 Partners Weigh In on the Potential Drivers of the Next Restructuring Cycle for the ABI JournalSecurity-Based Swap Rules for End-UsersNIGC Issues New Guidance on Financing Document Reviews and Declination LettersSheppard Mullin BlogsAntitrust Law BlogArt Law BlogCannabis Law BlogChina Law Update BlogClass Action Defense Strategy BlogConstruction & Infrastructure Law BlogConsumer Finance and Fintech BlogCorporate & Securities Law BlogCovering Your Ads BlogEnergy Law BlogEntertainment Law BlogExecutive Compensation Law BlogEye on Privacy BlogFCC Law BlogFDA Law BlogFashion & Apparel Law BlogFinance & Bankruptcy Law BlogGame CounselGlobal Trade Law BlogGovernment Contracts and Investigations BlogHealthcare Law BlogHospice Law BlogInsurance Law BlogIntellectual Property Law BlogLabor & Employment Law BlogLatin American BlogLaw of the LedgerLex ArbitriNew York Commercial Division Round Up BlogOrganizational Integrity Group BlogReal Estate, Land Use & Environmental Law Blog Retail Trend SpotterSheppard Mullin In The KnowTrade Secrets Law BlogU.S. Legal Insights for French BusinessesU.S. Legal Insights for Korean BusinessesVenture Law BlogFinance & Bankruptcy Law BlogRSSLinkedIn TwitterFacebookPrivacy PolicyDisclaimerAbout The FirmSheppard Mullin is a full-service Global 100 firm with more than 1000 attorneys in 15 offices located in the United States, Europe and Asia. 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