David Karp, Co-Head of Special Situations & Alternative Investments, examines how bankruptcy claims buyers can use contractual put rights offensively to mitigate losses, highlighting a Second Circuit decision involving Longacre’s purchase of Delphi claims. He explains that the court enforced the plain language of the agreements, holding that even a non-substantive objection was sufficient to trigger the seller’s repurchase obligation, reinforcing the binding nature of negotiated protections. Karp notes that while the ruling aligns with market expectations, it also underscores the importance of carefully drafting and understanding contract provisions, as courts may scrutinize attempts to use these rights to offset unfavorable investment outcomes.