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ARTICLE · 27 AUGUST 2020

Kramer Levin's Comments To The Current LSTA Shift Date Rules

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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The LSTA has requested comments on its Shift Date rules, which have been in effect since Sept. 8, 2011. Below is our commentary on the current LSTA Shift Date rules along with our proposals ..

United StatesInsolvency/Bankruptcy/Re-Structuring
Thomas Janover
Thomas Janover
Andrew I. Ward
Andrew I. Ward
Joseph A. Satto
Joseph A. Satto
Erica D. Wolf
Erica D. Wolf
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The LSTA has requested comments on its Shift Date rules, which have been in effect since Sept. 8, 2011. Below is our commentary on the current LSTA Shift Date rules along with our proposals to amend the current rules.

Under the current rules, the LSTA uses a two-step process to determine a Shift Date.

Step 1: Review Trade Data. The LSTA reviews information it receives on a monthly basis from dealers, which details the loan trades entered into by such dealers during the previous month and whether such trades settled on par or distressed documentation. If the LSTA can make a determination based on this data, it publishes a Shift Date.

Step 2: Supporting Information. If the LSTA can't determine a Shift Date pursuant to Step 1, the LSTA reviews "Supporting Information," which includes information relating to the borrower/obligors (including the existence of any defaults) and the industry in which the borrower/obligors do business, information published by

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