Wade Kennedy Analyzes Cumulus Media Decision in The Secured Lender

January 18, 2018

Chicago debt finance lawyer Wade Kennedy’s analysis of a federal court finding against Cumulus Media in a dispute with creditors opposed to the company’s proposed debt restructuring was featured online in The Secured Lender, a publication of the Commercial Finance Association (CFA).

In the scholarly analysis, Kennedy broke down the unusual reasoning employed by the U.S. District Court for the Southern District of New York last year in a bench decision in favor of the administrative agent for its principal credit facility and certain secured term lenders. The company had sued the administrative agent for withholding consent for Cumulus’ proposed debt refinancing plan.

U.S. District Judge Katherine Polk Failla rejected the claim, agreeing with the agent and the term lenders that the refinancing was not permitted under the credit agreement, but did so by finding an implied restriction in the negative covenant permitting certain debt. Kennedy’s article detailed the full context of the decision and its implications in interpretation and drafting of credit agreements.

Kennedy leads McGuireWoods’ Asset Based Lending Group and focuses his practice on representing financial institutions in complex syndicated credit facilities to asset-based and leveraged borrowers. He serves as chair of the CFA’s Education Foundation Governing Board Development Committee.

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