Apollo-Backed Shutterfly’s Lenders Tap Lawyers as Loan Drops

Some of Apollo Global Management’s Shutterfly LLC lenders have tapped legal counsel as the company’s loan comes under pressure, according to people with knowledge of the matter.

A group of lenders is getting advice from Davis Polk & Wardwell, said the people, who asked not to be identified because they aren’t authorized to speak about it. Representatives for Apollo and Shutterfly declined to comment, while messages left with Davis Polk were not returned.

The photo company’s debt plunged last week as a large seller emerged, other people said. Some lenders have grown concerned that the company could pursue ...