On September 14, 2026, 9fin published “A deep dive on the LME adversary proceeding,” an analysis by Laurie Tomassian and Jane Komsky tracing the evolution of liability management exercise (LME) adversary proceedings from 2023 through 2026. The article examines seven Chapter 11 cases in which excluded minority lenders fought back through adversary proceedings. Quoted throughout as leading voices on minority lender strategy is managing partner Andrew Glenn and partner Agustina Berro.

9fin’s central finding is that the adversary proceeding has become the primary mechanism for excluded lenders to vindicate their rights, and that the playbook is now well established.

Andrew addresses the strategic and tactical decisions minority lenders face, from the threshold decision to file through case framing and appellate strategy.

  • On the decision to file: “is based on a range of factors, including advisors involved in the case, where the case is filed and cost considerations”
  • On cost barriers: “There are minority lenders who take a more defensive position, not because they don’t want to go on offense, but because going on offense costs millions and millions of dollars…some people do not want to pay for the fight”
  • On preparedness: “Everybody knows what the game plan is…you should have the lawsuit ready and pleadings ready on day one of the bankruptcy”

He explains how adversary proceedings allow minority lenders to redefine the narrative, stripping away the misleading “creditor vs. company” framing and exposing the true dynamics:

  • On framing the case: “This is a lender-on-lender violence case…this is not a case of someone trying to liquidate the company”

He also addresses what may be the most tactically significant issue for excluded lenders — where to file, and why appellate access matters as much as the trial court:

  • On forum selection: “It is within the bounds of zealous advocacy to find the best place to file a case”
  • On appellate strategy: “making sure that even if you get a negative decision from a trial court, that you have recourse to an appellate court that can actually deliver the final decision on the application of state law”

Agustina examines how majority lenders are adapting as litigation risk rises. She notes that LME transactions are increasingly structured around “trying to minimize the risk of litigation by offering the minority just enough that they won’t bring a lawsuit,” a shift minority lenders must understand to protect their positions.

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