We're not going to see anywhere near the wave of bankruptcies in 2015. Buddy Clark More Quotes by Buddy Clark More Quotes From Buddy Clark Going forward, we’re seeing banks requiring borrowers to agree to new anti-hoarding provisions, which prevent borrowers from drawing down the full amount of availability under their loans and sitting on the cash, anti-hoarding provisions permit borrowers to draw what they need to use for operations but not to build a war chest for a company readying itself for bankruptcy. Buddy Clark business When providing a DIP, lenders will want to button down everything that hasn’t already been pledged as collateral, having unencumbered assets in a bankruptcy gives the debtor a bargaining chip with the various constituents at the table, which they would likely have to give up in order to get a DIP loan. Buddy Clark business There’s just an incredible amount of money out there that’s exposed under these reserve-based loans, even if oil prices were to bounce up to US$50 or US$65, a lot of these companies are already mortally wounded. A lot of them are looking for options, and bankruptcy is one of the obvious options. Buddy Clark business
