DIPs, Roll-Ups, and Pro Rata Sharing: A Primer
Mark Lightner, Esq.: Head of Legal Strategy
Ian Feng, J.D.: Senior Covenant Analyst
29 June 2026
- How recent bankruptcy rulings are shaping interpretations of lender sharing protections.
- What American Tire, Del Monte, and ConvergeOne reveal about value redistribution risks.
- Why contractual drafting increasingly determines outcomes in restructuring disputes.
- How roll ups and DIP financing may affect creditor positioning during Chapter 11 cases.
- Where documentation trends are evolving to address participation rights and downside protection.
Executive Summary
Recent rulings highlight growing debate around lender protections in restructurings. Courts continue examining contractual language closely.
Market participants face uncertainty when agreements lack specific provisions. Consequently, documentation quality remains highly influential.
Several disputes explored treatment differences among similarly situated lenders. Participation opportunities often shaped judicial analysis.
Meanwhile, drafting trends reflect efforts to manage future restructuring outcomes. Protections vary across documentation frameworks.
Ultimately, contractual wording remains central to resolving sharing disputes. However, legal interpretations continue evolving.
Fill out the below form to view the full article:
Please note that we can only respond to valid business email addresses and the interview is already available to clients.
Recently Published
Research
AllCovenant-ReviewAutosUS CR Quarterly Q1BasicLevFin-InsightsTelecommunicationsMay GMUFinancialsCreditSights-ResearchUtilitiesCase Studiesshow-homeshow-initiation page-homeMunicipalsSLRsTMTAsset Management ResourcesPharmaceuticalsJune GMUEnergyResearchGaming/LeisureWebinar Related ResourceIndustrialsPoliticsMediaUS Special Sits OutlookConsumerTariffsSpecial SituationsEuro Autos: Barbarians at the GatesCorporatePrivate CreditAerospace/DefenseU.S. Autos Expert PanelCovenantsBondsReal EstateEU Special Sits OutlookStrategyPost PetitionServicesESGChemicalsIranESG-HomeEmerging MarketsBanksOutlooks-HomeTransportationConstructionTechnologyInsuranceAsia in focus webinarManufacturingEMEA CR Quarterly Q1
DIPs, Roll-Ups, and Pro Rata Sharing: A Primer
DIPs, Roll-Ups, and Pro Rata Sharing: A Primer
Read More
US Bankruptcy: Del Monte, UCC and majority lenders oppose minority lender group’s request to certify confirmation for direct appeal to Third Circuit
US Bankruptcy: Del Monte, UCC and majority lenders oppose minority lender group’s request to certify confirmation for direct appeal to Third Circuit
Read More
Cable One (CABO): Dead Money, Moving to Hold
Cable One (CABO): Dead Money, Moving to Hold
Read More
EMEA Special Situations: Stressed corporates make up ~40% of LFI Special Situations universe in May, but dealflow continues to fall – LFI data