Cloud 9fin Jane’s LME Addiction — The minority report with Shai Schmidt
Sep 15, 2025
Shai Schmidt, a partner at Glenn Agre, brings his expertise as a bankruptcy attorney to discuss minority holders' strategies. He highlights the differences between LMEs and bankruptcies, emphasizing the importance of organizing early and understanding credit agreements. Shai tracks the shift from exclusionary to inclusive LMEs, warning that inclusive offers can still be aggressive. He shares insights on key sacred rights and the potential for using litigation as leverage in negotiations, offering essential advice for lenders navigating this complex landscape.
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Organize Early And Engage Proactively
- Organize early when you suspect an LME and form a minority group before the process starts.
- Engaging early with the company and advisors preserves leverage and improves outcomes.
Credit Agreement Drives Strategy
- Understanding the credit agreement is central to shaping strategy and claims in an LME.
- A principled, document-based view helps when engaging companies, sponsors, or majority groups.
Inclusive Deals Can Still Be Aggressive
- Market trend has shifted toward more inclusive LMEs, but inclusivity doesn't equal generosity.
- Inclusive deals can still be aggressive and may secure 100% participation with poor minority terms.