Legal Lens Could 2025's LME outcomes spook the market for 2026?
Dec 18, 2025
Jason Goldstein, a partner at Gibson Dunn specializing in restructuring, shares his insights on the evolution of LME bankruptcies. He discusses the booming landscape of LMEs, the risks associated with post-LME bankruptcies, and how sponsor incentives shape out-of-court restructurings. Jason dives into the implications of indemnity issues and the pivotal roles of appellate outcomes. He also explores how adversary actions can strategically influence cases and discusses the tightening of deal documents in response to market dynamics. A fascinating look at the future of restructuring.
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Career Start With U.S. Trustees
- Jason Goldstein stumbled into restructuring via a summer role with the U.S. Trustees.
- That early exposure led him to pursue bankruptcy courses and a career in restructurings.
LMEs Driven By Sponsors Seeking Runway
- LMEs are mainly sponsor-driven tools to extend runway rather than lender-led attacks.
- Sponsors use every contractual mechanism to buy time because Chapter 11 is costly and disruptive.
File Declaratory Actions Early
- When using an LME with bankruptcy risk, file a declaratory adversary early to shape the litigation landscape.
- Tie the RSA and DIP to a clear exit path so parties must choose whether to support or derail emergence.