James Millar Discusses Disqualified Lender Provisions in Latest Creditor Rights Coalition Contributor Feature

Corporate restructuring team co-leader James Millar coauthored an article for the Creditor Rights Coalition, to which he is a regular contributor, that discusses disqualified lender (DQ) provisions.

Millar highlights the recent trend where companies have greatly expanded the DQ lists to cover a wide swath of funds that would be likely purchasers of distressed debt. He adds that this is an example of debtors seeking to turn a relatively docile instrument into a weapon to develop leverage against a constituency.

Millar explains that lenders should focus on it from the start to ensure that the governing loan documents don’t include broad disqualifications of distressed funds.