Liability management exercises (LMEs) have become a critical tool for distressed companies seeking to refinance debt and avoid bankruptcy. However, these transactions often leave excluded lenders vulnerable to significant risks, creating a growing need for strategic, innovative counsel.

Glenn Agre has established itself as the go-to law firm for excluded lenders, combining market knowledge of credit agreements with exceptional litigation prowess. Already recognized as a leader in lender-on-lender disputes, Glenn Agre addresses the increasing complexity of LMEs as companies explore more creative—and contentious—structures.

The firm has represented minority lender groups in some of the most high-profile LMEs in recent years, including transactions involving Robertshaw, Del Monte Foods, Allen Media Group, Ivanti Software, and Magenta Buyer (McAfee). These engagements highlight Glenn Agre’s early involvement in advising on and protecting lender positions in the most challenging distressed situations.

As LMEs face more scrutiny in the courts, the recent Serta decision has introduced new layers of complexity. Glenn Agre partner Andrew Glenn was recently featured in 9fin discussing the U.S. Court of Appeals for the Fifth Circuit’s December 31 ruling that Serta Simmons Bedding LLC’s 2020 restructuring was not an “open-market purchase” within the meaning of its credit documents. Reflecting on the broader implications of Serta and other rulings, Glenn noted:

“While the Serta decision is garnering headlines, market participants should not overlook the Mitel decision. The market knew Judge Jones’ Serta decision was questionable because it seemed to disregard the plain meaning of the term ‘open market purchase’ and contradicted the New York judge’s interpretation in the same case. But Mitel warrants attention moving forward because in future non-pro-rata transactions, company-side counsel may argue that the transaction survives scrutiny under a hyper-technical interpretation of the relevant agreement.”

Partner Shai Schmidt has also provided critical insights into liability management exercises. His thought leadership has been featured in key publications, including:

  • Debtwire: 2025 outlook for restructuring.
  • Bloomberg: Analysis of debt restructuring delays.
  • 9fin: Implications of the Mitel and Serta rulings.
  • Octus: Joint cooperation agreements and double-dip financing.

Through its market-defining representations and thought leadership, Glenn Agre continues to shape the evolving landscape of liability management exercises, ensuring that excluded lenders are equipped to protect their interests and navigate complex disputes.