Hedge
Funds and the Bankruptcy:
How will they drive outcomes?
How can others profit (or protect themselves)? Sara L. Chenetz, Partner, Sonnenschein, Nath &
Rosenthal LLP;
Gary Katz, Managing Director, Archer Capital Management LP
Plan ahead to
avoid problems as hedge funds appear, often unexpectedly, at every
level of the capital structure:
Are they
really lenders, or eager would be owners? Are they security
holders or claims traders, shareholders, or all of the above?
What are their
goals? How do their financial incentives affect their behavior?
What are the best techniques for working them, or against them?
Hedge funds as
debtors, and helping them and their investors plan for such an
event, will also be explored.
Explore, for example, the issues involved in the pending
fraudulent transfer actions against redeeming investors.
Listen to a
dialogue between an accomplished bankruptcy attorney who has worked
both for and against hedge funds in various situations, and an
active and outspoken investor, himself a former bankruptcy attorney,
as they debate the issues involved in working with hedge funds on
court appointed committees, as sources of rescue and/or exit
financing, as claimants in multiple positions, and as debtors.
If you have
particular questions that you want to be sure will be covered,
please send them in advance to
Questions@PaideiaEvents.com,
marked Hedge Funds.
About
the presenter
Ms.
Chenetz is a member of Sonnenschein’s Corporate Reorganization &
Bankruptcy Practice focusing on complex bankruptcy, restructuring,
workout and litigation matters throughout the country.
Ms. Chenetz has formulated and implemented restructuring and litigation
strategies on behalf of official and unofficial creditor,
bondholder, equity and retiree committees, as well as debtors,
lenders, unsecured creditors, bondholders, equity holders, insurers,
trustees, indenture trustees, vendors, lessors, asset purchasers,
landlords, tenants, directors and officers, investment funds,
multi-employer pension plans and others. Her experience includes
out-of-court workouts and the formulation of alternative plans. She
has represented clients in the prosecution and defense of complex
preference, fraudulent transfer, equitable subordination, breach of
duties, recharacterization of debt as equity, substantive
consolidation and non-dischargeability disputes. Ms. Chenetz has
contested and championed authorization to obtain DIP financing, use
of cash collateral, grant of adequate protection, asset sales,
approval of disclosure statements and confirmation of plans.
Ms. Chenetz also advises businesses and individuals, their lenders,
creditors, owners and potential asset acquirers on the benefits and
detriments of the commencement of bankruptcy proceedings and
alternatives.
In
her practice, Ms. Chenetz has worked with businesses in a wide range
of industries. Among these are the airline, defense, education,
entertainment, finance, food processing, franchising, insurance,
health care, home building, hospitality, information technology,
manufacturing, media, metal processing, publishing, real estate,
retailing, security, steel, trucking and utility industries. She
has served as lead or co-counsel in trials, evidentiary hearings and
appellate matters in bankruptcy and other courts throughout the
United States.
Ms. Chenetz is a member of the firm’s National Credit Markets and
Subprime Lending Task Force.
