Reorg Radio cover image

Reorg Radio

Americas Core Credit: Lowdown on Cram-Ups (Nov. 8, 2020)

Nov 8, 2020
24:27
Snipd AI
Senior reporter James Holloway and distressed debt legal analyst Kevin Eckhardt discuss the overview of cram-ups for companies including Garrett Motion. The podcast explores recent chapter 11 cases where senior secured lenders may be controlled by junior note holders through a process called Cram up. It highlights ongoing conflicts between senior lenders and alternative plan sponsors, as well as disputes between debtors and Wells Fargo in the CBL case.
Read more

Podcast summary created with Snipd AI

Quick takeaways

  • Cram downs in chapter 11 bankruptcies have become a recent trend, allowing junior noteholders to gain control while rendering senior creditors unimpaired.
  • Tensions have arisen between senior lenders and RSA parties in the CBL and Associates bankruptcy case, potentially leading to a cram-down proposal.

Deep dives

Plaintiffs in Malinkrott bankruptcy seek relief from automatic stay

Plaintiffs involved in class action antitrust suits related to Aqthar Gel before the Malinkrott bankruptcy are seeking relief from the automatic stay. The plaintiffs argue that Malinkrott PLC and Malinkrott ARD LLC are actively engaged in ongoing violations of federal and state antitrust laws and consumer fraud laws. They claim that their claims exceed $10 billion and represent the largest group of unsecured creditors who have not signed the RSA. Relief from the automatic stay would allow them to pursue changes to Aqthar business practices and seek damages against defendant companies.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode