Glenn Agre partner Shai Schmidt recently shared his insights with Law360 on the impact of the recent Serta ruling and how the decision could have broad ramifications for future liability management exercises.
Shai pointed out that the “open market purchase” provision at issue in Serta is critical because many other credit agreements contain similar language.
“Probably around 70% to 80% of credit agreements out there of the relevant vintage have that
language of ‘open market purchase,’” he said. “The decision in Serta can therefore increase the litigation risk for a company that tries to do a non-pro rata exchange.”
Read more in Law360 (subscription required).