Golden Shares or Simply Gold Plated?
An article co-authored by Troutman Sanders partners Penelope Parmes, Hugh McDonald and Meghan Wells appeared in the Oct. 24 print issue of the Orange County Business Journal. The article detailed two recent court decisions in which debtor companies were allowed to file for bankruptcy relief over the objection of creditors who held blocking votes. They explain and address the impact of the blocking right known as a “Golden Share,” in which a lender receives equity interests with the Special Purpose Entity (SPE) agreeing that all shareholders/members must consent to a bankruptcy filing.