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ARTICLE · 28 OCTOBER 2020

What We're Reading This Week [October 26, 2020]

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The Wall Street Journal reports that the trailing 12-month default rate for U.S. corporate issuers of speculative-grade bonds and loans was 8.5% in September of 2020, which is below the 11.2% ...

United StatesInsolvency/Bankruptcy/Re-Structuring
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The Wall Street Journal reports that the trailing 12-month default rate for U.S. corporate issuers of speculative-grade bonds and loans was 8.5% in September of 2020, which is below the 11.2% forecasted by credit rating agency Moody's in April 2020. [WSJ; Oct. 26, 2020]

Reporting from Business Insider details how subscription streaming service Quibi is shutting down nearly six months after it raised $1.75 billion in pre-launch investments. Quibi will reportedly pursue an assignment for the benefit of its creditors in lieu of filing for bankruptcy. [Business Insider; October 23, 2020]

On October 22, 2020, the New York Court of Appeals issued a split decision in CNH Diversified Opportunities Master Account, L.P. v. Cleveland Unlimited, Inc., finding that the holders of a minority in principal amount of senior secured debt retained the right to sue for payment on the notes after a majority holder-directed strict foreclosure that purported to cancel the notes.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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