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Suzanne Uhland Weighs in on Energy Industry Borrowing Trend

July 15, 2016


O’Melveny partner Suzzanne Uhland was quoted in the July 15, 2016 issue of Law360. The article, “Energy Companies Playing Risky Game with Short-Term Credit Grab,” discussed how energy companies are increasingly using a borrowing strategy called a defensive draw — maxing out on credit before lenders can cut off access to cash — and the way it has affected the lending market and the dynamic in bankruptcy court.

“The magic isn’t just that you don’t need DIP financing, you also don’t need a cash collateral order if the cash is unencumbered,” Uhland told Law360. “The seismic shift here is that power that has been increasingly pooled into the first-liens is now shifting to lower parts of the capital structure.”

Based in New York and San Francisco, Uhland is chair of O’Melveny’s US Restructuring Practice. She represents parties in Chapter 11 reorganizations and out of court restructurings, and buyers and sellers in Bankruptcy Code Section 363(b) sales and other distress transactions.