Glenn Agre partner Shai Schmidt recently shared his thoughts on the recent Serta and Mitel Networks decisions, which could have far-reaching implications for cash-strapped companies on how they execute debt restructurings.
While Mitel’s credit agreement didn’t include the same “open market purchase” language that appeared in Serta, the two rulings appear to give opposing guidance.
Shai noted that: “Given New York’s prominence as a forum for liability-management related litigation and Houston’s status as a leading bankruptcy venue within the Fifth Circuit, this judicial tension will likely loom large moving forward as companies plan their next liability-management exercise.”
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