Second Circuit Holds that Trust Indenture Act 316(b) Prohibits Only Non-Consensual Amendments to Core Payment Terms of Bond Indentures

On January 17, 2017, the Court of Appeals for the Second Circuit issued its long-anticipated opinion in Marblegate Asset Management, LLC v. Education Management Finance Corp., 1 ruling that Section 316(b) of the Trust Indenture Act of 1939, 15 U.S.C. § 77ppp(b) (the “Act”), prohibits only non-consensual amendments to core payment terms of bond indentures.

Filed under:
USA, Banking, Capital Markets, Insolvency & Restructuring, Litigation, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Bond (finance), Second Circuit, United States bankruptcy court
Authors:
Susanna M. Buergel , Lewis R. Clayton , Andrew J. Ehrlich , Gregory A. Ezring , Brian S. Hermann , Brad S. Karp , Daniel J. Kramer , Alan W Kornberg , Richard A. Rosen , Audra J. Soloway , Lawrence G. Wee , Jonathan Hurwitz
Location:
USA
Firm:
Paul, Weiss, Rifkind, Wharton & Garrison LLP