When we last blogged in January about what borrowers can do to prepare for a potential cessation of the London interbank offered rate (“LIBOR”), there was a lot of uncertainty surrounding whether LIBOR would actually be replaced, what that replacement would be, and whether the market would have sufficient time to react. Due to this
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Preparing Borrowers for the LIBOR Phase-Out: Some Practical Advice
By James Stefanick & Nicole Indelicato on
Posted in Finance, Recent Developments
As a result of the well-publicized scandals involving LIBOR rate manipulation, British regulators announced plans in July 2017 to phase-out LIBOR by 2021 and replace it with a more reliable benchmark. In addition to other markets, the LIBOR phase-out will have a broad impact on the $4 trillion syndicated loan market, including currently existing loan…
Delaware Court of Chancery Identifies Fiduciary Duty Constraints on Preferred Equity
By Samantha B. Epstein & James Stefanick on
Posted in General Business, Recent Developments
A recent decision of the Delaware Court of Chancery (the “Court”) places certain fiduciary constraints on a company’s ability to satisfy its obligations to its preferred equity holders. While investors often seek to acquire preferred stock in return for their investments, the Court’s decision in The Frederick HSU Living Trust v. ODN Holding …