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Distressed Debt and Secondary Market Trading

Seward & Kissel is a leading firm in the area of secondary market trading of distressed, par and near par loans and claims trading.

We regularly represent major investment banks, broker/dealers, hedge funds and other participants in all aspects of the secondary loan trading and claims trading market.

We are skilled in all facets of the purchase and sale of loans and claims with experience dating back to the emergence of the active secondary market in the 1980s.

Seward & Kissel has played an important role in the evolution of the secondary loan market by assisting in the development of many of the standard documents that are used throughout the industry.

As a full service law firm, our expertise extends to all areas of legal practice associated with the secondary loan and claims trading industry, including bankruptcy, securities, tax, ERISA, real estate and derivatives products. 

Above all, we are committed to providing each client with the highest quality legal services in the most efficient and responsive manner.

We regularly represent clients in all aspects of the purchase and sale of distressed, par and near par loans, including:

• Drafting, Reviewing and Negotiating Trade Confirms, Assignment and Participation Agreements, Swaps and Repurchase Agreements
• Due Diligence Reviews
• Assessing Recovery Risk
• Monitoring Bankruptcy Proceedings and Creditor Recoveries
• Participating in Creditor Committees and Chapter 11 Cases
• Advising Clients in Connection with the Implementation of Effective Strategies to Influence or Control Subsequent Restructurings, Reorganizations and Bankruptcy Proceedings

Our experience also includes advising clients in respect of all aspects of the purchase and sale of large portfolios of performing, non-performing and distressed assets, including many offshore transactions in numerous jurisdictions.  We regularly assist our clients during all phases of large portfolio transactions and provide a full range of services, including (i) analysis of all relevant regulatory issues, (ii) drafting and negotiation of bid, sale and transfer documents, and (iii) coordination and supervision of local counsel.

Seward & Kissel frequently provides in-house training seminars to our clients on various issues relating to secondary market trading, including detailed walk-throughs to first time participants of all relevant operational issues and documentation requirements.

We are an active member of both the Loan Syndications and Trading Association, Inc. (the “LSTA”) in the United States and the Loan Market Association (the “LMA”) in the United Kingdom.  We have assisted in the development of many of the standard documents which are utilized by the industry for secondary loan trading which have been published by the LSTA.  Our attorneys also regularly serve on many of the key committees for the LSTA.

Many of the practitioners in our Distressed Debt and Secondary Market Trading Practice group have extensive experience in drafting and negotiating many of the most complex syndicated, bi-lateral, secured and unsecured credit facilities on behalf of certain of the largest domestic and international financial institutions.  As a result, our practice group possesses unique insights into the issues related to various credit facilities.