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Past Event
16 October 2014


  • Paul J. Astolfi
    T +1 312 701 8028
  • Barbara M. Goodstein
    T +1 212 506 2264
  • Thomas S. Kiriakos
    T +1 312 701 7275

Model Revisions Relating to Disqualified Institutions

The Loan Syndications and Trading Association recently released a series of revisions to its Model Credit Agreement Provisions (MCAPs). Among the most significant additions to the MCAPs are the provisions addressing “Disqualified Institutions.”

Borrowers and lenders have become increasingly concerned about the possibility of distressed debt funds and borrower competitors acquiring interests in syndicated loan facilities through the secondary market. These concerns become particularly acute in a restructuring or bankruptcy context, as evidenced by recent judicial challenges. The MCAPs attempt to balance the competing interests of borrowers and sponsors by seeking to protect both the borrower’s competitive position, including its confidential information, and the interests of syndicate members seeking maximum liquidity of their debt positions in the credit facility.

Join Mayer Brown partners Paul Astolfi, Barbara Goodstein and Tom Kiriakos as they review the MCAP Disqualified Institution provisions and discuss issues relating to enforceability of those provisions under state law as well as in the context of bankruptcy proceedings.

For additional information, please contact .

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