Shai Schmidt discusses the importance of the Mitel decision with 9fin

Glenn Agre partner Shai Schmidt recently addressed the significance of the recent appellate decision in the Mitel case and its impact for future liability management exercises (LMEs).

According to Schmidt, contrary to the Serta decision’s likely chilling effect on uptiers, Mitel could embolden sponsors and company-side advisors moving forward and excluded lenders should brace themselves for more non-pro rata LMEs in the future.

Schmidt noted that the decision may be relevant in future LME-related litigation: “While the credit agreement in Mitel is distinguishable, in many respects, from most credit agreements we’ve seen recently, I expect borrowers to cite Mitel in defense of future non-pro rata LMEs,” Schmidt commented to 9fin.

Glenn Agre advises lenders in connection with LMEs and has represented minority lender groups in some of the largest LMEs in recent years.