News & Analysis as of

Creditors Bonds

Second Circuit Holds That Minority Bondholders Cannot Avail Themselves of the Trust Indenture Act

by BakerHostetler on

While out-of-court restructurings can help companies in need, they can negatively impact minority bondholders. Minority bondholders displeased with out-of-court restructurings looked to a 2015 decision interpreting the Trust...more

Second Circuit Issues Reversal in Closely Watched Marblegate Case

by Dechert LLP on

In a 2-1 opinion, the Second Circuit overruled the district court in Marblegate Asset Management LLC v. Education Management Corp., finding no violation of the Trust Indenture Act (“TIA”) in connection with an out-of-court...more

"Second Circuit Confirms That Bond Issuers Can Restructure Out-of-Court Via Consent Solicitations"

On January 17, 2017, the U.S. Court of Appeals for the Second Circuit issued an opinion in Marblegate Asset Management v. Education Management Corp., 15-2124-cv(L), 15-2141-cv(CON) (2nd Cir. Jan. 17, 2017), overturning a...more

Second Circuit Reverses District Court’s Marblegate Decision; Narrows Protections Provided to Bondholders Under Section 316(b) of...

by King & Spalding on

The Trust Indenture Act of 1939 (the “TIA”) codifies a select set of requirements and prohibitions intended to protect perceived “sacred rights” of holders of public bond instruments. When the U.S. District Court for the...more

Second Circuit Reverses Marblegate Decision

by Seyfarth Shaw LLP on

Trust Indenture Act Section 316(b) Limited to Actual Amendments to An Indenture’s Core Terms - Seyfarth Synopsis: On January 17, 2017, in a 2-1 decision in Marblegate Asset Management, LLC v. Education Management Finance...more

Second Circuit Reverses Marblegate Holding on TIA § 316(b)

by Morgan Lewis on

Court holds that TIA § 316(b) prohibits only non-consensual amendments to an indenture’s core payment terms. The US Court of Appeals for the Second Circuit limited the ability of minority bondholders to challenge...more

Is Renewable Energy in Puerto Rico Back On Your Radar?

by Sullivan & Worcester on

Renewable energy deal discussions centered on projects in Puerto Rico have been difficult – particularly for project owners – over the past few years. The foundations of most of the projects on the island were power purchase...more

The Impact of PROMESA on Creditors

On June 30, 2016, the United States Senate passed the “Puerto Rico Oversight, Management and Economic Stability Act” (“PROMESA”) and it was quickly signed into law by President Obama. PROMESA enables the Commonwealth of...more

Global Private Equity Newsletter - Fall 2015 Edition: Recent Developments in Acquisition Finance

by Dechert LLP on

When a portfolio company underperforms, a sponsor may consider various options to address the perceived performance issues, including changes to a portfolio company’s management team, cost structure, capital structure or...more

New Opportunities in Cross-Border Special Situations Lending

by Latham & Watkins LLP on

Recent changes in cross-border leveraged loan documentation requirements open up new possibilities for both borrowers and lenders. Cross-border leveraged loan documentation has become increasingly permissive with respect...more

Southern District of New York Recognizes Bondholders’ Rights Under Section 316(b) of the Trust Indenture Act

In lieu of proceeding through a chapter 11 bankruptcy, borrowers and their creditors usually prefer to restructure their debt agreements outside of court. Although they avoid the costs and delays of bankruptcy, out-of-court...more

Delaware Bankruptcy Court Allows Debtor to Sidestep “Make-Whole” Payment

by Alston & Bird on

Bankruptcy Judge Christopher S. Sontchi recently ruled in the Energy Future Holdings case that the debtor will not be required to pay the $431 million “make whole” demanded by bondholders upon the debtor’s early payment of...more

Energy Future Holdings – More Bad News for Bondholders on Make-Whole Premiums

by Kelley Drye & Warren LLP on

Make-whole premiums are often used in connection with the issuance of debt in order to protect noteholders with long term investment horizons from being repaid early. At the time of the bankruptcy filing of EFH in April 2014,...more

Distressed Downloads - June 2015

A Battle in the Making in the Oil and Gas Sector: Second Lien vs. High Yield Debt - In the oil and gas industry, there is a storm brewing between holders of second lien debt and unsecured high yield bonds. These...more

Court Rejects Effort to Transfer Venue of Energy Future Holdings Bankruptcy From Delaware to Texas

by Cooley LLP on

In a ruling yesterday, Judge Christopher Sontchi of the United State Bankruptcy Court for the District of Delaware denied a motion by a bond trustee to transfer venue of the Dallas-based Energy Future Holdings from...more

Don’t Cry for Me Argentine Bondholders: The Second Circuit Rules

by Shearman & Sterling LLP on

On August 23, the Second Circuit issued its long-awaited opinion on Argentina’s appeal from the Southern District’s amended injunction requiring that Argentina make “ratable payment” to the plaintiffs when it next makes...more

Bill on Bankruptcy: US Airways Need a Merger More than AMR  [Video]

by Bloomberg Law on

Aug. 15 (Bloomberg) -- The strength of the U.S. Justice Department's antitrust suit to block the merger between AMR Corp. and US Airways Group Inc. is the first topic on the video with Bloomberg Law's Lee Pacchia and...more

The Cooperative Bank’s Restructuring – will this be a case of lessons learned?

by White & Case LLP on

The UK’s bank regulatory and insolvency law structures were unprepared for the global financial crisis. As a result, the UK government’s response to intense bank stress in the immediate aftermath of the crunch led to a number...more

Bond Consent Solicitation Payments - Court of Appeal Upholds Judgment in Azevedo & Another v Imcopa

by White & Case LLP on

In summer 2012, two important judgments were handed down on cases relating to bond consent solicitations. Although the consent solicitation techniques proposed by the debtor companies in each case were markedly different, at...more

Judge Rules In Favor Of Stockton And Accepts Chapter 9 Petition

Round one of the fight between the City of Stockton, California and its creditors is finally over. On April 1, 2013, Bankruptcy Judge Christopher M. Klein held that Stockton satisfied the eligibility requirements for a...more

New Concerns for Bondholders, Lenders and Other Creditors Following SCC’s Indalex Decision

by Bennett Jones LLP on

On February 1, 2013, the Supreme Court of Canada (SCC) released its much-awaited decision in the Indalex case. While the central issue in Indalex was the priority of wind-up deficiencies in defined benefit pension plans...more

Bill on Bankruptcy: MF Global Creditors Undeterred by Low Value  [Video]

by Bloomberg Law on

Jan. 16 (Bloomberg) -- The low valuation creditors of MF Global Holding Ltd. put on their liquidating Chapter 11 plan isn't deterring the bond market where debt is being sold for roughly twice the predicted recovery for...more

Bill on Bankruptcy: Will 2013 Be Kind To The Bankruptcy Bar? [Video]

by Bloomberg Law on

Jan. 2 (Bloomberg Law) -- Bankruptcy lawyers and turnaround managers can expect another lousy year in 2013, for reasons Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle explain on their new...more

Bill on Bankruptcy: Big Surprises For AMR, MF Global Creditors [Video]

by Bloomberg Law on

Dec. 19 (Bloomberg) -- Surprises about the financial condition of MF Global Holdings Ltd. and AMR Corp., the parent of American Airlines Inc., make up the first topic for discussion in the newest video by Bloomberg Law's Lee...more

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