Boardriders Credit Agreement

In addition, the new agreement eliminated various agreements and reporting obligations that protected lenders. You herely appoint us as agent, with the full authority to enter and execute a document and/or perform any act we deem appropriate to confirm the granting of rights, consents, agreements and waiver declarations in accordance with this Agreement. “Boardriders, Inc. has completed a major recapitalization transaction with the support of our renewable lenders, a large majority of our long-term lenders, a consortium of European banks and our equity sponsor. Recapitalization operations improve the company`s liquidity and ability to weather the pandemic and return to pre-pandemic performance levels. Recapitalization operations were authorized under all of our credit and equity facilities. The complainants recall that the accused discovered that they could face a potential dispute by calling the agreements in which the $321 million opened under the name of “Open Market Purchase Agreements” “clear”. However, the applicants point out that the old credits were valued at the same time at face value for roll-up purposes and that they were traded in the debt market in difficulty “at the level of 50% to 60%”. The Boardriders case is about to be argued between Serta Simmons Bedding, LLC and its lenders. In serta, a group of lenders claimed that the company was recapitalizing “upt” similar to the upt, which led to the addition of another subgroup of lenders as part of the credit facility.1 As the global pandemic continues to weigh on the economy, borrowers face increased financial and liquidity constraints. It is not surprising that such borrowers are looking for creative ways to relieve this pressure. It remains to be seen whether uptiering is the “new normal” or whether Serta, Boardrider and a handful of similar situations are unique. It also remains to be seen how some of these creative recapitalisations will be considered and dealt with in subsequent bankruptcy proceedings.

In particular, if similar lenders have been treated differently and prejudicially, we can expect aggrieved lenders, among others, to apply for fair subordination under the Bankruptcy Act in order to restore the original priority for which they negotiated. For lenders seeking additional contractual protection under their existing credit contracts, the implementation of guarantees of the type described above is easier said than done, especially in the case of an existing credit contract. Given that credit markets remain relatively robust and oversubscribed syndicates continue to be placed in the market, lenders seeking such protection may be at the margins, while other more aggressive borrowers use capital.