On August 14, 2026, the U.S. Bankruptcy Court for the District of Delaware issued an opinion recharacterizing an intercompany loan from a parent company to its indirect subsidiary as an equity contribution and, in the alternative, equitably subordinating the loan to the claims of former executives. Our lawyers examine the court’s reasoning, including its focus on the absence of arm’s-length negotiations and disinterested decision-makers, and the implications for sponsors and parent companies of distressed companies. https://t.co/fpwtq1D8F7
A company considering a liability-management transaction should be mindful of lessons learned from the iHeart Chapter 11 proceedings and other cases addressing the viability of such transactions. https://t.co/agPFrFhiXs
Congrats to the eight Kirkland partners named to @Law360's "Rising Stars" list, which honors outstanding attorneys under 40 years old. https://t.co/RfDmU0DimC