Cloud 9fin Not Your Daughter's Liens — Sid Levinson and team recall the original uptier LME
Mar 10, 2026
Sidney Levinson, seasoned restructuring lawyer who led the NYDJ uptier, joins Scott Selinger, leveraged finance specialist, and Erica Weisgerber, litigation and LME defense expert. They recount the original uptier mechanics, the court and litigation drama, how participation offers and blockers evolved, and the clever structural workarounds that keep liability management deals edgy.
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How Mudrick Pulled Off The NYDJ Uptier
- Sid Levinson recounted how Mudrick led the NYDJ uptier using a sacred-rights clause to change pro rata treatment.
- After Judge Ramos reacted negatively, Levinson offered the deal to all lenders and all but one accepted, ending the litigation.
Pick LME Strategy Based On Liquidity Versus Duration
- Scott Selinger observed LMEs are chosen based on whether a company has a liquidity problem or a duration/structural issue.
- Uptiers are fastest for liquidity problems, while asset carve-outs or 5149-style deals suit duration problems but take more time and cost.
Anticipate Judicial Reaction And Avoid Unnecessary Protections
- Erica Weisgerber warned to price and plan for litigation risk because judges unfamiliar with finance may react unpredictably.
- Avoid unnecessary features (like broad no-action amendments) that courts view as litigation-prevention tricks.