Loan Syndications and Trading Association
On September 5, the Loan Syndications and Trading Association (LSTA) hosted a webinar on “Credit Agreements, Divisions of LLCs and the New Delaware Law” presented by Orrick partner Emin Guseynov and Sabrina Rusnak-Carlson, general counsel of THL Credit.
Effective as of August 1, 2018, Delaware amended its Limited Liability Company Act to allow LLCs to divide themselves into two or more LLCs and to allocate their assets, liabilities, rights and duties among the newly divided LLCs pursuant to a “plan of division.” Loan documents typically do not contemplate divisions, and so lenders should consider whether their agreements need to be modified to prevent leakage of credit support through the use of this new device. During the webinar, Emin and Sabrina discussed:
With over 500 participants, this presentation was one of LTSA’s best attended webinars. Click here to view the slides and a recording of the LSTA presentation and here for the Orrick Client Alert.