BarbriSFCourseDetails

Course Details

This CLE course will equip counsel to negotiate and draft restructuring support agreements (RSAs, also known as "lock-up" or "plan support agreements") that will help reduce the cost, length, and adverse effects of a Chapter 11 case. A well-structured RSA can assure all stakeholders that the debtor will emerge from the process with minimal disruption to the business, its creditors, and its employees. The program will discuss how RSAs can help to coordinate a multitude of stakeholders and the pitfalls of attempting to circumvent Bankruptcy Code protections.

Faculty

Description

Debtors and stakeholders of all levels of sophistication are increasingly relying on RSAs to structure and prenegotiate a term sheet for what will become the Chapter 11 plan. Under an RSA, creditors agree to support a plan that contains the terms and conditions set out in the RSA.

The key to a successful RSA is sufficient support from crucial stakeholders to comply with Chapter 11. Counsel must identify the most likely and most critical conflicts that are likely to arise and resolve those as much as possible. Attempts to avoid or undercut Bankruptcy Code protections will almost certainly reduce the value to creditors and may sabotage reorganization.

Counsel must also be wary of overreaching, such as negotiating with some creditors and presenting it to others as nonnegotiable, withholding critical information from all participants, unfair distributions, and procedural end-runs around Section 1129 of the Bankruptcy Code.

Listen as our authoritative panel of attorneys discusses best practices for crafting effective RSAs that minimize the overall cost and delay in Chapter 11 and maximize distributions to creditors.

Outline

  1. Overview of RSAs
    • Identifying the proper parties
    • Provisions for debtors
    • Provisions for creditors
  2. Terms that invite objection
    • Solicitation vs. negotiation
    • Giving plan supporters better treatment
    • Milestones
    • Fiduciary terms
    • Third-party releases
  3. Drafting best practices

Benefits

The panel will review these and other key issues:

  • What is a plan support agreement?
  • Can RSAs alter Bankruptcy Code priorities?
  • What are essential terms in an RSA for the various parties and stakeholders?
  • How does a court review an RSA?
  • How can the parties prevent overreaching by certain constituencies?