Among the many financial innovations that came out of the COVID era, non-pro rata uptier transactions as a liability management exercise (“LMEs”) are among the more controversial. While lawsuits challenging non-pro rata uptier transactions are making their way through the courts, two important decisions were recently issued by the Court of Appeals for the Fifth Circuit and the New York Appellate Division.
USA, Insolvency & Restructuring, Litigation, Mintz Levin Cohn Ferris Glovsky and Popeo PC, United States bankruptcy court
Market overview
European Union, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Corporate governance, Carillion
Introduction & Key Takeaways
The year 2024 ended with some major legal fireworks, as two important courts issued contrasting New Year’s Eve decisions on the validity of “uptier” liability management transactions that have played a large role in corporate debt restructurings for the past several years.
USA, Banking, Company & Commercial, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP