Self-study: Liability Management Transactions

Based on live webinar held June 24, 2020 during the AIRA AC Virtual Series.

Particularly in light of unprecedented economic conditions, distressed and potentially distressed companies are increasingly seeking guidance on how to manage liabilities, preserve equity value, and extend runway. The objective of this program is to address tactics for implementing liability management strategies, including amend and extend transactions, up-tiering exchanges, drop-down exchanges, and discounted debt repurchases. Topics cover best practices with respect to implementing such strategies including governance, tax, and other relevant considerations as well as lessons learned from several recent examples of notable liability transactions in the market.

Learning Objectives

After completing this program, participants will be able to:

1. Understand the importance of independent or “disinterested” company directors and how their degree of control may vary;
2. Identify important tax considerations related to liability management transactions; and
3. Understand trends and types of liability management transactions in the current environment.

Instructors

Anup Sathy (Partner, Kirkland & Ellis LLP)—Anup Sathy is an internationally recognized practitioner in matters relating to corporate restructurings, workouts and Chapter 11 reorganizations. He has substantial experience representing and advising companies, buyers, boards, investors and lenders in all aspects of distressed and insolvency situations.

John Castellano (Managing Director, AlixPartners, LLP)—John specializes in guiding companies through complex reorganizations by his leadership skills and hands-on approach in working collaboratively with clients. He specializes in implementing business turnarounds and in providing interim management services as a chief restructuring officer (CRO) and chief financial officer (CFO), as well as interim chief executive officer (CEO). John quickly can assess and prioritize what issues are critical and helps lead management teams through extensive changes in processes and methodologies. He has extensive experience in the energy, oil & gas, and infrastructure industries, with areas of expertise in business plan development, contingency planning, and creditor negotiations. John quickly earns the confidence of management teams and board of directors, as well as key constituents involved in his engagements. His 30 years of experience in management and advisory roles and extensive restructuring experience benefit his clients based on his expertise in resolving complex and challenging issues.

Tyler Cowan (Managing Director, Lazard)—Tyler Cowan is a Managing Director in the Restructuring Group at Lazard and is based in Lazard’s Chicago office. Since joining Lazard in 2003, Tyler has been involved in a variety of restructuring, merger and acquisition, and corporate finance assignments for clients from a wide range of industries.

David M. Nemecek (Partner, Kirkland & Ellis LLP)—David Nemecek is a corporate partner resident in the Los Angeles office and the New York office. Dave's practice focuses on representing private equity sponsors, portfolio companies, hedge funds, asset managers and alternative capital sources in complex financing transactions, including leveraged buyouts, liability management transactions, recapitalizations, restructurings and other special situation transactions.