"Recent Decision Highlights Need for Clarity in Trading Bankruptcy Claims" published by New York Law Journal

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October 15, 2018

Unlike markets for distressed bank debt or restructured equity, there is less certainty as to whether a binding claims trade exists at the moment the parties reach agreement on the asset, price and size. Claims trades commonly involve extended negotiations of bespoke terms, involving commercial actors who are not professional traders. As such, determining when a legally binding trade exists can be a complex and fact-specific undertaking where expectations that may be valid in other markets do not necessarily apply.

In this article published by the New York Law Journal, RK&O partners David Daniels and Julia Lu discuss recent cases that address this issue and outline key lessons learned for investors trading claims.  

Click here to read the full article.