Davis Polk partner Eli Vonnegut was quoted in Reorg discussing key takeaways from restructuring in 2020 as well as the outlook for 2021. Vonnegut noted increasing flexibility in the primary restructuring market. He explained that when a top-tier sponsor does a broadly syndicated financing, there is an auction dynamic, meaning less competition and more leverage for sponsors.

Restructuring Outlook Survey Takeaways: Fed Stimulus Spoils Party for Distressed Players; Potential Increase in Involuntary Filings Due to ‘Creditor-on-Creditor Violence’; Overvalued Markets Vulnerable to Inflation,” Reorg (January 21, 2021) (subscription required)