Allison Citron

Senior Associate

New York


Read full biography at www.orrick.com

Allison Citron is a Senior Associate in Orrick’s Restructuring group.

Allison Citron is a Senior Associate in Orrick’s Restructuring group. She advises international and domestic investment bank and hedge fund clients, broker-dealers, large financial institution creditors and secured lenders with respect to the buying and selling of domestic and international trade claims, bank debt, syndicated loans, post-restructuring equity, securities, notes and many other distressed assets. She serves both buy-side and sell-side clients as counsel in complex distressed investing transactions including in the arena of litigation financing. Additionally, she specializes in the primary and secondary documentation and negotiation arena under the Loan Syndications and Trading Association (LSTA) and the Loan Market Association (LMA) as well as multiple global jurisdictions. She also works under the International Swap Dealers Association (ISDA) regime and is an active participant in the loan trading market.

Allison has extensive experience in drafting, negotiating and reviewing transfer and commercial loan documentation relating to both par and distressed debt obligations, as well in cross border transactions, debtor-in-possession financings, restructurings and acquisition financings. Allison has advised multiple clients in connection with transactions relating to both distressed and par borrowers in a variety of industries including TXU, Lyondell, Lehman Brothers, MF Global, Peabody and Caesars Entertainment, among many others. She also frequently advises on claims transactions in connection with Madoff, both on a direct level as well as the multiple feeder funds. 

Allison is an active participant in The Loan Syndications and Trading Association and frequently weighs in on several existing and current issues. She has presented on several panels in connection with the new distressed debt regimes and global transferability issues as well as recently moderated a panel on the litigation finance market. She is also an inaugural member of the LSTA’s new Women’s Association.

Posts by: Allison Citron

Supreme Court Rules the Federal Government Must Pay Health Insurers’ Multi-Billion Dollar Risk Corridor Claims

 

Insurance markets have been watching the Supreme Court’s docket for its ruling on whether the Federal Government must compensate some of health insurers’ losses. Today the Supreme Court ruled that the Federal Government must satisfy these obligations. Insurers and holders of their claims are expected to seek billions of dollars of compensation.

Section 1342 of the Patient Protection and Affordable Care Act attempted to mitigate risk for insurers who sold health insurance on federal insurance exchanges through a “risk corridor payment system” – during the first three years of the insurance exchanges’ operation, 2014 through 2016, insurers who profited from selling insurance on the exchanges transferred a share of their profits to the Federal Government, which was required to compensate other insurers whose costs exceeded the premiums they collected on the exchanges. However, in 2014 the Congress passed an appropriations bill that purported to limit these compensation payments, and a federal appeals court ruled that this and subsequent appropriation bills repealed or suspended the Federal Government’s obligation to make transfer payments to loss-making insurers. Some insurers’ losses reached billions of dollars.

Today the Supreme Court held that § 1342 imposed a direct legal obligation on the Federal Government to make risk corridor payments to loss-making insurers who had participated in the insurance exchanges, notwithstanding the Federal Government’s argument that § 1342 provided insufficient details for how the Federal Government should satisfy these obligations. The Court held that § 1342 does not require risk corridor payments to be budget-neutral, nor to permit partial satisfaction of the Federal Government’s obligations to insurers, and rejected arguments that an appropriations bill could implicitly repeal another statute’s express statutory language.

Investors who are interested in trading in insurers’ risk corridor claims should note that while the Supreme Court’s ruling appears to shelter risk corridor payments from any offsets or deductions by the Federal Government, there are further nuances they should understand concerning how the risk corridor payment program calculates claim amounts – and in how claim transfer agreements structure transferees’ rights.

Investors who want to capitalize on these developments should contact Raniero D’Aversa and Allison Citron of Orrick’s Restructuring group.

Secondary Trading As Usual?

 

In a very short time, the COVID-19 pandemic has spread frightening levels of uncertainty all around the world. While many schools, businesses, and houses of worship have closed, the financial markets remain open. Like other markets, the secondary market for syndicated loans has experienced stomach-churning volatility and steep declines in asset prices in recent weeks. If you aren’t thinking about how COVID-19 could affect liquidity and settlements, you should be. Fortunately, the standard trading documents published by the Loan Syndications & Trading Association (the “LSTA”) already contain important concepts and tools aimed at promoting liquidity and pushing trades toward settlement, even during times as uncertain as these.

Click here for a brief refresher on some of the provisions that could prove critical in the months ahead.