Mayer Brown's Sean Scott on the lender side of LMTs

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Mar 26, 2024

Sean Scott, a senior lawyer at Mayer Brown, discusses liability management transactions, including tactics like Serta defenses and cooperation agreements. He explores the growth potential of LMTs in the next five years, the impact of reduced cooperation agreements on debtors, and strategies to mitigate risks in lending transactions.

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ANECDOTE

Past Cases

Sean Scott worked on the Samson Resources and EP Energy bankruptcy cases.
Judge Isger confirmed EP Energy's plan right before the COVID-19 shutdown, requiring virtual restructuring.

INSIGHT

LMT Overview

LMTs (Liability Management Transactions) help issuers restructure debt, aiming for financial flexibility.
Common types include drop-downs (J.Crew), up-tearings (Serta), and double-dips (Savor).

INSIGHT

LMT Popularity

LMTs have become more popular due to opportunistic market participants and expensive bankruptcies.
Sponsors and lenders are incentivized to avoid Chapter 11.

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