Solvent Debtor

Default interest and tender under the spotlight in landmark case

A UK case provides clarity on the enforceability of default interest rates, according to Donna Newman and Peter Sequeira at Stephenson Harwood.

Carlyle-affiliated Fortitude Re strikes reinsurance deal with Unum

The deal to transfer $3.8bn of long-term care policies to Fortitude will earn Carlyle recurring fees.

Medallia taken over by Blackstone-led creditor group

The creditor trio will inject $150m to reduce Medallia debt, in addition to $500m from the company to invest in AI efforts.

Moody’s: Mid-market credit quality erosion is hidden in plain sight

Rising leverage, declining liquidity and a weakening of free cashflows is putting pressure on mid-market issuers.

Germany’s clarified framework for enforcement and recoveries

How the country’s updated auction rules are starting to shape intercreditor dynamics, enforcement strategies and loss-given-default assumptions in deals involving German collateral. By Dagmar Gold of Deutsche Pfandverwertung

Hertz case offers win for bankruptcy creditors of solvent debtors

Supreme Court decides not to decide, leaving in place a Third Circuit decision and boosting a rule for protection of creditors.

First Brands bankruptcy prompts questions over private credit exposure

The Ohio-based concern’s term loans were primarily underwritten and syndicated by investment banks.

Moody’s: Sponsors using accordion features to boost debt of weaker borrowers

Incremental debt provisions have existed for a long time, but stiff competition is driving manoeuvres to increase leverage.

Fitch: US private credit default rate hit 5.7% in February

Healthcare has been a problematic sector, with a default rate of 7.5%.

Akoustis, a wireless tech concern, enters bankruptcy

Under a decision by the Third Circuit appeals court, Akoustis may have to pay post-petition interest to debtors.