This chapter explores how Chewy, a subsidiary of PetSmart, transitioned from being a guarantor to a non wholly owned subsidiary, generating concerns among lenders and the broader market. It also discusses the implications of this transaction on debt documents and the inclusion of anti PetSmart language in recent loan amendments.
In today's episode of the "Covenant Conversations" podcast, Peter Washkowitz discusses provisions in credit agreements preserving guarantees of guarantors that become non-wholly owned subsidiaries unless certain conditions have been met.
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