Financial Restructuring and Bankruptcy: Rapid Fire

What this video covers

• The critical distinction between maintenance covenants (quarterly, automatic) and incurrence covenants (action-triggered tripwires), and which loan documents feature each
• How cross-default trips on ANY default while cross-acceleration requires actual acceleration, and why the latter is borrower-friendlier
• What the automatic stay stops instantly without court order, and why the debtor-in-possession (DIP) runs the business by default rather than a trustee
• The absolute priority rule waterfall from DIP financing through administrative expenses, senior secured, senior unsecured, subordinated, mezzanine, preferred, and common equity
• The dual-pronged class acceptance math: two-thirds amount AND over one-half number of holders, and why the best interests test is applied holder-by-holder
• What cramdown requires: an impaired class, at least one impaired non-insider class accepting, fair and equitable treatment, and no unfair discrimination
• Why a merger vote as sale triggers Form S-4 registration for stock-for-stock deals, and how the Mergers and Acquisitions (M&A) Disclosure Overlay standardizes deal disclosures