Davis Polk partner and Restructuring practice co-head Damian Schaible shared his thoughts with Bloomberg Law on creditor cooperation agreements. These agreements are pacts among creditors to work together in negotiations with debtors during a restructuring. “It’s a way for creditors to fight back against a company that’s trying to divide and conquer lenders,” Damian explained.

Damian also noted that approximately 80% of his creditor clients discuss cooperation agreements during restructuring negotiations and around 20% ultimately go through with them. “Cooperation agreements used to be rare, now it’s rare if lenders don’t talk about them,” he said.

“Apollo, Pimco Show Creditors Can Play Nice With Carvana Deal,” Bloomberg Law (July 20, 2023) (subscription required)

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