This checklist was published in in the Thomson Reuters Publication, Practical Law, and was created by team members of our Restructuring Administration and Issuer Services practices, including Christina Pullo, James Daloia and Tiffany Archbell.
The checklist focuses on the solicitation processes for a rights offering, covering the basic timelines, mechanics, and coordination of the process. Rights offerings allow companies to raise new capital without taking on more debt and provide creditors or interest holders an opportunity to purchase new securities in the reorganized company. In the context of bankruptcy, rights offerings are proposed during formulation of a plan of reorganization and are often a crucial component of creditor’s plan of recovery and a source of funding for consummation of the plan.
When a company conducts a rights offering it should engage a subscription agent early on, possibly at the onset of negotiations among the applicable parties in interest.This checklist includes considerations for companies and their counsel when planning and effectuating a rights offering with a subscription agent. Complete the form below to download the checklist and further understand this critical process.
*This article was originally published in the Thomson Reuters Publication, Practical Law.