Dye & Durham lenders organize with new advisers

Lenders to legal‑software and cloud technology provider Dye & Durham have taken steps to organize their approach to the company by appointing Houlihan Lokey (HLI) as financial adviser. The selection follows a series of pitches from advisory firms in recent weeks, as creditors evaluated how best to respond to growing attention on the company’s capital position.

The move reflects an effort among creditors to structure a unified stance as they assess options related to Dye & Durham. Rather than acting individually, key lenders are now working through a dedicated advisory team to frame their strategy and communication with the company.

First‑lien lenders are currently concentrating on how to engage with Dye & Durham, instead of negotiating new financing proposals. Discussions are centered on process and coordination, indicating that creditors are still in an early phase of evaluating the situation and their potential next steps.

By prioritizing engagement strategy, lenders appear to be gathering information and aligning views before considering any formal changes to the company’s capital structure or liquidity arrangements. This phase is focused on understanding the company’s position and preparing for possible future negotiations.

A group of creditors has entered into a cooperation agreement to manage their collective approach to Dye & Durham. This agreement is not currently admitting additional holders, effectively limiting participation to an established set of lenders.

The cooperation group is being advised by law firm Paul Hastings, adding legal support alongside the financial advisory role played by Houlihan Lokey (HLI). Combining financial and legal counsel gives the group structured resources as it considers its rights and options under existing lending arrangements.

Silver Point Capital and KKR (KKR) are among the members of this cooperation group. Their involvement places notable institutional investors within the coordinated lender bloc that is now engaging with Dye & Durham on its capital situation.

The formation of a coordinated creditor group and appointment of advisers comes amid increased scrutiny of Dye & Durham’s capital position. This scrutiny has prompted lenders to organize more formally, rather than address issues on a piecemeal basis.

While no specific new financing or restructuring transaction has been announced, the infrastructure now in place among lenders indicates that stakeholders are preparing for a range of potential discussions with the company. The current focus remains on assessment and engagement, with further steps likely to depend on the evolution of Dye & Durham’s financial profile.