Debtwired! An ad hoc discussion of ad hoc lender groups
Mar 5, 2026
Stephen Silverman, Partner at Gibson Dunn who advises on restructuring and liability management, offers a legal view on ad hoc lender group trends. He discusses why such groups formed, how liability management exercises changed their role, early organization drivers, cross-holding strategies, and whether organized groups speed restructurings and enable hybrid out-of-court deals.
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Ad Hoc Groups Shifted To Defensive Par Investor Coalitions
- Ad hoc groups have shifted from opportunistic buyers to defensive par investor coalitions.
- Stephen Silverman says modern groups form to protect capital as LME risk rose, not to equitize from low-basis buys.
Debtors Favor Fragmented Creditor Groups To Lower Costs
- Debtors prefer fractured creditor constituencies to create competitive dynamics and push pricing down.
- Silverman explains companies and advisors use NDAs and separate groups to manufacture a race to the bottom in LMEs.
Crossholder Coalitions Produce Better Economic Results
- Crossholder groups often yield the best economic outcome by negotiating internally rather than allowing a debtor to run a race to the bottom.
- Silverman recounts advisors' term 'everything is all in the family' to describe this effective approach.