NEW YORK, December 3, 2015 – Lauren Hanrahan, partner in Milbank, Tweed, Hadley & McCloy’s Global Leveraged Finance Group, provided commentary in a recent Creditflux article titled, “Yankee loan documentation: Lost in the mid-Atlantic.”
Ms. Hanrahan explains that, in the US, chapter 11 provides the path for restructurings: "You don’t need to specifically address some of the issues that are important in Europe, where you have to assume that restructurings will happen out of court.” With regard to Yankee loan intercreditor agreements, Ms. Hanrahan elaborates, “It can be a case of deciding term by term whether to follow the US or LMA
model. Another approach to the intercreditor agreement is to draw it up so that it switches between the scenarios of a chapter 11 filing or a European restructuring."
