FICC Focus State of Distressed Debt: Cadwalader’s Mintz on Recent LME Litigation
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Oct 20, 2025 Douglas Mintz, a partner at Cadwalader specializing in financial restructuring, discusses the evolving landscape of distressed debt and creditor strategies. He advocates for proactive co-ops among lenders to avoid chaos during liability management exercises. The conversation delves into recent court rulings affecting restructuring practices, market shifts towards inclusive deals, and the implications of litigation cases like Serta and Mitel. Mintz also addresses the risks of premature organizing and sheds light on notable ongoing legal developments in the space.
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Communications Sector: Winners And Remaining Stress
- Stephen Flynn highlighted communications as the most distressed sector, powered by asset sales and liability management wins.
- Big moves like Dish, Lumen and Warner drove sector outperformance despite ongoing stressed names like Altice USA.
Anti‑Cooperation Clauses Face Pushback
- Sponsor attempts to add anti‑cooperation or anti‑boycott clauses are cropping up but lack market acceptance.
- Such clauses risk making paper less liquid and invite market pushback and rewrites.
Omniblockers Haven't Caught On
- Omniblocker provisions appeal to excluded lenders but haven't gained market traction due to reduced flexibility.
- Lenders value optionality and trading liquidity more than absolute control over future amendments.