On August 11, 2020, the United States Court of Appeals for the Second Circuit issued an Opinion in Lehman Brothers Special Financing Inc. (“LBSF”) v. Bank of America, N.A., et. al, No. 18-1079,[1] an adversary proceeding brought in the Chapter 11 bankruptcy proceeding of Lehman Brothers Holdings, Inc.
USA, Derivatives, Insolvency & Restructuring, Litigation, FisherBroyles LLP, Bankruptcy, Title 11 of the US Code, Second Circuit
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