Partner Marc Ayala was quoted by several media outlets, including Bloomberg Law, WSJ Pro Bankruptcy, and Global Restructuring Review, examining the implications of a recent ruling in the long-running Serta Simmons Bedding lender dispute. Marc described the U.S. Bankruptcy Court for the Southern District of Texas’s decision awarding more than $400 million to lenders excluded from the company’s 2020 debt exchange as a landmark ruling that provides a concrete roadmap for excluded lenders to pursue damages in liability management exercise disputes and strengthens their leverage in future negotiations.
Marc, who co-leads the firm’s creditors’ rights, bankruptcy, and restructuring practice, said “This decision will indicate to market participants in the pre-LME context that there can be concrete, significant, and straightforward consequences to a finding that an LME breached the governing instrument(s).”
BLOOMBERG LAW: Serta Ruling Offers Damages Road Map in Lender-on-Lender Disputes
WSJ PRO BANKRUPTCY: Serta’s Landmark Liability Management Deal Backfires on Participating Lenders
GLOBAL RESTRUCTURING REVIEW: Serta Lenders Win US$400M Award in Landmark Texas Ruling