King & Spalding’s Marisa Sotomayor, Serena Granger and Ara Dungca co-authored an Expert Q&A for Practical Law Finance (Thomson Reuters.) The article focuses on how “hidden leverage” can erode secured lenders' recoveries through permissive debt baskets, off balance sheet financing and holdco or unrestricted subsidiary structures. It also offers practical drafting strategies to tighten credit documentation and improve lender visibility before a downturn, beyond the typical liability management exercise provisions.