As companies and consumers weather the effects of higher rates and sticky inflation, the retail industry looks poised to remain in the headlines for restructuring and liability management this year. This panel will discuss some of the largest retail filings in 2023 (e.g., Bed Bath & Beyond and Rite Aid) and provide an outlook for the sector in the early part of 2024 and beyond. We will hit the most significant challenges and opportunities for retailers and market participants, as well as some key pitfalls best avoided. Interplay with other distressed industries like commercial real estate will also be covered.

This panel considers the time and place for creditors and debtors to employ or demure certain tactics, including board sweeps, revolver draws, retentions, governance rights, and others. As bankruptcy courts continue to allow parties more and more leeway for aggressive maneuvers, the question continues to shift from whether they can do something to whether they should.

The restructuring market has been adapting to a climate of rising interest rates, which has brought a shift in focus towards credits that are sensitive to these changes. Highly leveraged companies and those with variable-rate debts are particularly scrutinized as they face challenges managing their debt obligations amidst the rising cost of capital. This panel will delve into the specific industries and types of companies hedge funds, investors and other lenders are focusing on in 2024 and beyond for potential distress and restructuring opportunities.

Follow-on financings and liability management processes increasingly involve competitive dynamics between existing creditors, on the one hand, and third-party investors, on the other hand. This panel will explore these evolving dynamics and the risks and opportunities created, including the role of private credit funds and the risks and opportunities created for existing stakeholders and potential new investors.

King & Spalding LLP will lead a discussion on issues and considerations related to opportunistic credit funds sourcing, diligencing and negotiating financings to stressed companies raising new capital or refinancing existing debt (including as part of liability management). The panel will focus on the opportunities and challenges of the opportunistic credit strategy, and will identify common business, legal and other issues that such investors navigate to consummate such financings. This panel will also consider ways investors involved in a competitive financing process – either with other opportunistic credit funds or existing stakeholders – can best position themselves to win the financing mandate.

Despite continued commitments from regulators, power and renewable energy companies have experienced recent financial headwinds due to higher borrowing costs, supply-chain issues, and softening demand. This panel explores the unique financial considerations in out-of-court restructurings and bankruptcy proceedings for these highly regulated, capital-intensive businesses.

Continuing challenges in today’s business environment, including higher interest rates, are creating headwinds for businesses large and small. As organizations scramble to preserve their enterprise value and manage costs, there has been an uptick in restructuring activity in the past year, and many predict that this will continue through 2024. This panel will focus on recent trends, strategies of savvy business leaders, and potential opportunities for shrewd investors in the current environment.

The value of debt held by CLOs has reached nearly a trillion dollars, with growth continuing at a rapid pace. While generally intended to minimize overall default risk, their presence in restructuring situations can create obstacles for both companies and their creditors, as well as opportunities. This panel will focus on how CLO investment guidelines, issuer-concentration limits, and restrictions on providing additional liquidity will continue to impact out of court and chapter 11 processes moving forward.