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
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