Reorganization Securities And Second-Lien Structures

Law360 ( November 9, 2010, 3:34 PM EST) -- The threat of reinstatement or cram-up of senior creditors in restructurings in many cases is a function of the breadth of intercreditor terms. Reinstatement under 1129 and 1124 of the Bankruptcy Code requires a determination that the creditor whose debt is reinstated on exit is not impaired, which means that defaults under the facility have been cured (other than certain financial and other defaults) and all of the legal, equitable and contractual rights of the creditor have been preserved....

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