Can the Lenders Stick Together?
Cooperation agreements, stock borrow costs, Midnight Madness and Spotify Wrapped.
Here is my schematic description of modern “liability management exercises”:
This is exaggerated and schematic; in particular, you cannot actually amend the credit agreement to say that some lenders get back zero. (What you do is amend the credit agreement to strip collateral and other protections from the disfavored lenders, or restructure the company to move assets out of the collateral package, or give the favored lenders new super-priority liens, etc.) But it captures the rough intuition of a lot of recent trades.