Partners Evan Greebel and Kenneth Noble Quoted on CFO.com on M Resort Deal

Evan Greebel and Kenneth Noble, partners in the firm’s Corporate and Bankruptcy and Creditors’ Rights practices, respectively, were quoted in an article on CFO.com on buying bank debt as a means to an acquisition. Both attorneys were part of a Katten team that structured such a transaction on behalf of Bank of Scotland, when the bank sold the debt of The M Resort (and effectively the company), to Penn National Gaming. “Lenders are opportunistic and willing to consider alternative structures,” Mr. Greebel says. “An intelligent buyer may look to acquire the debt as a mechanism to control the company.”

Mr. Noble says that this structure was preferred on both sides in part because it simplified the deal—an equity purchase would have involved many representations and warranties and various steps to the closing. “After we wrapped up the debt structure, [the deal] took four or five days,” Mr. Greebel adds.

They note that the technique is translatable to other industries. “It would suit any situation in which the lender has a significant amount of one company's debt and is no longer interested in working with the borrower anymore,” Mr. Greebel says. ("End Run Around Equity," November 1, 2010)