This chapter explores the controversial liquidity enhancement measure called super senior debt, highlighting a case study of SIRTA Simmons in the US and the legal disputes surrounding it.
In this episode, the Covenants by Reorg team discusses the Serta controversy and how Apollo seeks to block the company from creating “first-out,” “second-out” and “third-out” tranches, three ways to bring in new money through super senior debt and how provisions in debt documents can be creatively employed to subordinate existing creditors.
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