In a 2-1 opinion, the Second Circuit overruled the district court in Marblegate Asset Management LLC v. Education Management Corp., finding no violation of the Trust Indenture Act (“TIA”) in connection with an out-of-court debt restructuring.
Background
USA, Capital Markets, Insolvency & Restructuring, Litigation, Dechert LLP, Bond (finance), Bankruptcy, Unsecured debt, Injunction, Statutory interpretation, Interest, Debt, Maturity (finance), Dissenting opinion, Debt restructuring, US Congress, Constitutional amendment, Second Circuit
What happens when a debtor, whose loan is pooled and securitized, files for bankruptcy? Are payments made to investors recoverable as fraudulent transfers or preferences?
USA, Insolvency & Restructuring, Litigation, Securitization & Structured Finance, Dechert LLP, Commercial mortgage-backed security