In a highly-anticipated decision on a long-running bondholder dispute, the US Court of Appeals for the Second Circuit issued its judgment last week in Marblegate Asset Management LLC v Education Management Corp. It concluded that “Section 316(b) [of the US Trust Indenture Act 1939] prohibits only non-consensual amendments to an indenture’s core payment terms”, i.e. the amount of principal and interest owed and the maturity date.
European Union, USA, Capital Markets, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Consideration, Second Circuit
Court holds that TIA § 316(b) prohibits only non‐consensual amendments to an indenture’s core payment terms.
USA, Insolvency & Restructuring, Litigation, Morgan, Lewis & Bockius LLP, Bond (finance), US Congress, Second Circuit