Not necessarily so, according to the recent rulings of Southern District of New York Bankruptcy Judge Allan Gropper in the US$27 billion General Growth Properties Chapter 11 bankruptcy—at least with respect to the issue of substantive consolidation.
USA, New York, Insolvency & Restructuring, Litigation, Securitization & Structured Finance, White & Case, Public company, Bankruptcy, Debtor, Collateral (finance), Interest, Debt, Underwriting, Default (finance), Subsidiary, Secured loan, Credit rating agency, United States bankruptcy court
In a recent case1, the High Court concluded that it was right to sanction schemes of arrangement which formed part of a wider debt restructuring that excluded out-of-the-money junior creditors. In doing so, it valued the distressed companies on a going concern basis.
Background
United Kingdom, Insolvency & Restructuring, Litigation, Mayer Brown, Interest, Debt, Economy, Leveraged buyout, Valuation (finance), Debt restructuring, Discounted cash flow, Credit crunch