Energy Lenders Balk at Deals Aimed at Saving Miners, Drillers

David Karp, Co-Head of Special Situations & Alternative Investments, examines how creditors are increasingly pushing back against restructuring deals proposed by struggling energy and mining companies as commodity prices slump. Lenders are resisting transactions that shift value away from existing creditors—such as new financing arrangements or asset transfers—arguing they unfairly favor certain stakeholders and increase their risk exposure. This growing tension highlights a more adversarial restructuring environment, where creditors are less willing to support bailout efforts without stronger protections or improved terms.

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