“The cat-and-mouse game will continue,” says Scott Greenberg, the global chair of Gibson Dunn’s Business Restructuring and Reorganization Practice Group, referring to sponsors using “sneaky” nondisclosure agreements and anti-cooperation provisions to combat lender coordination in “three-dimensional” liability management. In a conversation with Bloomberg Intelligence analyst Negisa Balluku at Beard Group’s Distressed Investing Media Night, Greenberg discussed his extensive involvement in the evolution of cooperation agreements, the flexibility of larger lenders with “more skin in the game,” and drawbacks of organizing too early. He also delved into the impact of reputational risk in the enforceability of co-ops, cultural differences that influence lender dynamics in European and US markets and his definition of “success” in liability management.

The conversation took place on May 6. The State of Distressed Debt podcast is part of BI’s FICC Focus series.