Lawyers
Capital solutions and restructuring partner Nick Charlwood spoke to Octus about the so-called collapsing doctrine, under which courts consider a multi-stage transaction—such as a liability management exercise (LME)—as a single transaction rather than analyzing each step individually. In the second part of Octus’ debut report on the outcomes of LMEs in Europe, the Middle East and Africa, published on August 11, Nick discusses how, as a point of comparison, U.S. courts have ruled in analogous situations.
This issue arises in multi-step transactions in which each step was properly authorized, but the final step couldn’t have happened without the prior steps, Nick says. “Recent decisions have diverged in their analysis of collapsing doctrine claims in the breach of contract setting,” he explains. “One recent decision in the Southern District of Texas concluded that the collapsing doctrine is not applicable to breach of contract claims, while other courts appear to have accepted the theory at the motion to dismiss stage.”
» read the report (subscription required)
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