In an eagerly-awaited decision, the Second Circuit Court of Appeals has vacated the district court's decision in Marblegate Asset Management, LLC v. Education Management Finance Corp. The district court's decision had created much uncertainty and confusion in the restructuring and indenture trustee community. The Court of Appeals has now held that Section 316(b) of the Trust Indenture Act (“TIA”) is not violated by a restructuring merely because it makes payment to dissenting holders unlikely or impossible.

In today’s difficult economic environment, it is vital for trade vendors faced with customers’ bankruptcies to have optimal strategies for collecting invoices for past shipments and protecting prior payments from being clawed back by a bankruptcy estate as preferences. The need for such strategies will only increase as record amounts of corporate debt mature. Nelson D. Schwartz, Corporate Debt Coming Due May Squeeze Credit, N.Y.

Some victims of the now infamous Bernard L. Madoff ("Madoff") Ponzi scheme may receive a partial distribution in the next few months. On May 4, 2011, Irving H. Picard, the Trustee appointed for the liquidation of the business of Bernard L. Madoff Investment Securities LLC ("BLMIS") under the Securities Investor Protection Act, 15, U.S.C.