

Serta, Robertshaw, and Wesco in the landscape of LMTs with Dykema's Will Hotze
Mar 25, 2025
William Hotze, a partner at Dykema with a focus on bankruptcy and restructuring, dives into the intricate world of liability management transactions in bankruptcy. He revisits significant cases like Serta, Robertshaw, and Wesco, shedding light on the unique challenges these companies face. The conversation highlights critical lender litigation and the complexities of legal strategies within bankruptcy proceedings, revealing how precise documentation can influence outcomes. Hotze's insights underscore the dynamic nature of restructuring in this evolving field.
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Unplanned Bankruptcy Career
- William Hotze's career path into bankruptcy law was unplanned.
- Witnessing the 2008 financial crisis, he found bankruptcy law's creative problem-solving appealing.
LMTs: Classic Problem, New Solution
- LMTs, while currently a hot topic, offer solutions to classic bankruptcy problems like over-leveraging and liquidity issues.
- These cases, despite being grouped together as LMTs, are unique due to specific agreements and involved parties.
Serta: Lender-on-Lender Violence
- The Serta case epitomizes "lender-on-lender violence," where participating lenders prioritize themselves.
- Their bankruptcy playbook involves filing for bankruptcy and immediately seeking court approval for the transaction.