Print PDF Distressed Debt and Claims Trading

Since our inception, RK&O has had a strong presence in the trading market for par and distressed bank loans and other financial claims against troubled or insolvent companies. We are recognized internationally as a leader in distressed debt industry developments and legal practices.  By representing many of the original investors in distressed bank loans in the early 1990's, the Firm helped create the documentation, standards and customs that were later adopted by the entire secondary loan trading marketplace.  RK&O’s long experience representing hedge funds, investment banks, CLOs, banks and other financial institutions in all aspects of loan and claims trading gives our lawyers a unique understanding of the legal issues and commercial complexities that underpin the market.

Debt trading remains a key focus of the Firm’s corporate practice, which is regarded as having one of the world’s largest and most experienced teams dedicated to the secondary debt market. Market conditions mean that our clients demand an efficient and focused response.  RK&O stands out in its ability to provide a dedicated team of debt trading lawyers and legal assistants who can quickly grasp new market challenges, thus giving our clients the advantage of rapid and accurate execution.  The Firm’s strong presence in the debt trading legal community in both New York and London enables us to provide a responsive, real-time service to clients operating across multiple time zones and jurisdictions.  We have developed lasting relationships with highly skilled local counsel in numerous jurisdictions to help guide our clients through the myriad issues that arise in cross-border transactions.

Unlike many of our competitors in the market for distressed debt legal services, RK&O has a wealth of expertise in related corporate practice areas, such as lending, bankruptcy, credit derivatives, restructuring, litigation, private equity and securities. The Firm’s debt trading lawyers have strong familiarity with each of these areas and work closely with their colleagues to ensure that clients receive the broad perspective and tailored guidance they require.  We assist clients throughout the entire transaction process, from the initial due diligence of the borrower (and, if applicable, its insolvency case), through the review of credit documentation, structuring of the transaction and negotiation of deal-specific purchase documentation.  

RK&O has extensive experience in tax and ERISA issues that arise in acquiring and holding debt and claims (including withholding tax considerations in cross-border transactions).  In addition, our international presence gives us valuable insights into the different regulatory and accounting regimes applicable to investing in debt in multiple jurisdictions.  Investing in bank debt can also raise complex issues in the securities compliance area.  Our debt trading lawyers work closely with the Firm’s Securities Regulatory group to provide real-time, in-depth regulatory and compliance advice to our debt trading clients.

In the course of representing market participants, RK&O also provides legal advice on the analysis of claims, the regulatory implications of specific purchase and sale transactions, and the implementation of effective strategies to influence or control subsequent restructurings, reorganizations, bankruptcies and related litigation.  We advise clients at all stages of a debt transaction, including the preparation and negotiation of confidentiality agreements, bank loan "big-boy" letters, trade confirmations, distressed and par bank loan purchase and sale agreements, claim assignment agreements, participation and subparticipation agreements, netting letters, proceeds letters and purchase agreements for the sale of private debt securities.  

RK&O regularly advises market authorities and industry-wide groups on market practices and documentation used in secondary market transactions.  We are an active member of The Loan Syndications and Trading Association (LSTA) and The Loan Market Association (LMA), and our lawyers are often called on to lead industry groups and to speak at market conferences.

Publications

• "The Prospect of Municipal or State Defaults on Bond Obligations: Can Bankruptcy Help?" by Brian Fraser published in Thomson Reuter's Aspatore Special Report
• "A Loan Trader's Guide to Commercial Real Estate Loans" by Jon Kibbe, Paul Haskel, Michael Friedman and Kenneth Werner
• "Debt Trading in Distressed Europe" by RK&O Debt and Claims Trading Practice Group
• "Municipal Securities Rulemaking Board Notice Raises Questions Whether Certain Loans to Municipal Governments are Securities" by Brian Fraser featured in Law360

Presentations

• Jon Kibbe and Jennifer Grady present "Material Non-Public Information Best Practices" at LSTA 16th Annual Conference
• Paul B. Haskel speaks at the 2011 American Bar Association Annual Meeting
• RK&O partners participate in the panel discussion "Receiving Information, Managing Risk, and Preserving Liquidity: Strategies for the Current Regulatory Landscape" at the Financial Services General Counsel Luncheon in San Francisco
• RK&O partners present "Receiving Information, Managing Risk and Preserving Liquidity: Strategies for the Current Regulatory Landscape" at the Alternative Asset Management General Counsel Luncheon in New York City

News & Announcements

• Jon Kibbe and Michael Friedman quoted in The Distressed Debt Report article "Attorneys Applaud Bankruptcy Rule 2019 Amendments"
• Louisa Watt quoted in the International Financing Review article "Europe edges towards claims market"
• Richards Kibbe & Orbe LLP names Jeffrey Lehtman a partner and Catherine Turgeon and Ryan Jackson counsel
• Brian Fraser quoted by the Pittsburgh Post-Gazette article "Municipal bond certainties crumbling market riskier"