Fund managers investing in distressed debt, syndicated loans, notes and other types of debt often get invited to data rooms and deal websites where they are offered access to confidential information about a borrower.  In contrast to the traditional (perhaps, now antiquated) method of obtaining confidential borrower information directly from an existing lender or a dealer, subject to a written non-disclosure agreement, obtaining confidential information through such data rooms presents a number of special concerns.  First, the bank or dealer responsible for the data room commonly asks existing and potential lenders to choose between so-called “public-side” information and “private-side” information.  Second, in relation to distressed debt, the information so offered is often related to a restructuring, refinancing or other significant event with respect to the borrower and, especially with respect to what is labeled as “private-side” information, tends to be of a higher level or quality than the information generally available to all lenders or debt holders.  Third, the agreement embodying the terms of disclosure is typically contained in a non-negotiable splash page or a “click-through” agreement rather than a conventional, written, bilateral confidentiality agreement negotiated, executed and exchanged by trading parties.  See “Key Legal and Business Considerations for Hedge Fund Managers in Drafting and Negotiating Confidentiality Agreements (Part Three of Three),” Hedge Fund Law Report, Vol. 5, No. 28 (Jul. 19, 2012).  In addition, there is often some confusion on the part of traders and analysts regarding the true nature of public-side versus private-side information and the consequences of choosing one or the other.  In a guest article, William G. Frenkel and Michael Y. Sukhman, partners at Frenkel Sukhman LLP, discussed the legal consequences and risks associated with making that decision.  For a discussion of another legal issue relevant to distressed debt trading, see “Can a Hedge Fund Holding Secured Debt Credit Bid Up to the Face Amount of the Debt Or Only Up to the Amount Paid for the Debt?,” Hedge Fund Law Report, Vol. 7, No. 7 (Feb. 21, 2014).