Davis Polk partner and Restructuring co-head Damian Schaible was quoted in Bloomberg on distressed investing and the trend of lender groups pledging to negotiate as a whole with company management. “You essentially are locking arms with your co-holders and saying, ‘we’re not going to do anything that isn’t available to the rest of the group,’” said Damian. “You haven’t heard about them much at all for the last several years, but debt investors have started reverting to considering co-op agreements to protect themselves from this new threat of a private equity sponsor working with 51% of lenders to do something terrible to the other 49%.”

Distressed Investing Is Back. These Trades Are Defining the Game,” Bloomberg (December 29, 2022) (subscription required)