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ISDA 2018 US Resolution Stay Protocol

On July 31, 2018 the International Swaps and Derivatives Association published the ISDA 2018 US Resolution Stay Protocol (the US Protocol). The US Protocol is intended to enable parties to ISDA Master Agreements and similar Protocol Covered Agreements (PCAs) to contractually recognize the cross-border application of special resolution regimes applicable to global systemically important entities and their affiliates.

In this article, we provide a broad overview of the US Protocol and relevant resolution stay rules, then describe the effect and operation of the US Protocol.

USA, Banking, Derivatives, Insolvency & Restructuring, DLA Piper, International Swaps and Derivatives Association, Securities Investor Protection Corporation, Federal Deposit Insurance Act 1950 (USA)
ISDA 2018 US Resolution Stay Protocol - key questions and answers

On July 31, 2018, the International Swaps and Derivatives Association published the ISDA 2018 US Resolution Stay Protocol. The US Protocol is intended to enable parties to ISDA Master Agreements and similar "Protocol Covered Agreements" (collectively, PCAs) to contractually recognize the cross-border application of special resolution regimes applicable to global systemically important entities and their affiliates.

In this alert, we provide a broad overview of the US Protocol and relevant resolution stay rules, then describe the effect and operation of the US Protocol.

USA, Banking, Derivatives, Insolvency & Restructuring, DLA Piper, International Swaps and Derivatives Association, Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
SDNY Bankruptcy Court allows as a claim unamortized original issue discount generated in a fair market value exchange

The Bankruptcy Court for the Southern District of New York overseeing the Residential Capital (“ResCap”) cases issued an opinion on November 15, 2013 (the “Opinion”)2 allowing the unamortized interest associated with original issue discount (“OID”) that was generated in a fair market value exchange and claimed by ResCap’s junior secured noteholders (the “Holders”). While the OID ruling is only one component of the Opinion,3 it may have far reaching implications, as already evidenced in the pricing of other OID notes that were the product of fair market value exchanges.

USA, New York, Insolvency & Restructuring, Litigation, Dechert LLP, Bankruptcy, Interest, Fair market value, Second Circuit, United States bankruptcy court, US District Court for the Southern District of New York
The Delaware Bankruptcy Court confirms that lenders in multiple-level financing structures are entitled to the protections of corporate separateness

The Delaware Bankruptcy Court has confirmed that in multiple-debtor chapter 11 cases, the cramdown rules set forth in section 1129(a)(10) of the Bankruptcy Code must be applied on a per debtor basis as opposed to a per plan basis. See In re JER/Jameson Mezz Borrower II, LLC, No. 11-13338 (MFW), 2011 WL 6749058 (Bankr. D. Del. Dec. 22, 2011) (“Jameson”) and In re Tribune Co., No. 08-13141 (KJC), 2011 WL 5142420 (Bankr. D. Del. Oct. 31, 2011) (“Tribune”).

USA, Delaware, Insolvency & Restructuring, Litigation, Dechert LLP, Bankruptcy, Debtor, Title 11 of the US Code, United States bankruptcy court