Yesterday, Dexia S.A., a European bank that was rescued by the French and Belgian governments in September 2008, announced that it would no longer rely on state guarantees for future funding. All debt instruments issued prior to June 30, 2010 will remain guaranteed by the government pursuant to their terms.
Today, the Federal Deposit Insurance Corporation (FDIC) announced the close of a Rule 144A sale of $1.8 billion principal amount of notes backed by 103 non-agency residential mortgage backed securities (RMBS) from seven failed bank receiverships.
Late last night, after presiding over a three-day hearing on the matter last week, U.S. Bankruptcy Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York issued an order authorizing the sale of substantially all of the assets of General Motors Corporation (“Old GM”) under Section 363 of the Bankruptcy Code (“Section 363 Sale”).
This morning, General Motors Corp. (GM) announced in a Form 8-K filing that the U.S. Treasury Department has proposed details of a reorganization plan to GM in the event that GM seeks bankruptcy protection and bankruptcy court approval for the sale of substantially all of its assets to a newly organized company (New GM) pursuant to Section 363 of the Bankruptcy Code (363 Sale). Following the proposed 363 Sale, the U.S.
Last week, the European Commission (EC) announced that it has decided to further review Dexia’s restructuring plan under EC Treaty state aid rules to “establish whether the restructuring plan for the Dexia group will restore the group's long-term viability.” The plan includes a €6.4 billion capital injection, announced in
Yesterday, the Depository Trust & Clearing Corporation (DTCC) announced that its Trade Information Warehouse (TIW) successfully completed on October 21st settlement of the over-the-counter credit default swaps (CDS) related to the credit event of Lehman Brothers Holdings Inc.
The U.S. Bankruptcy Court for the Southern District of New York recently held that an ad hoc committee of bondholders, holding $162.5 in senior secured bonds, lacked standing to participate in the issuer-debtor’s Chapter 11 bankruptcy case. In re American Roads LLC, 2013 WL 4601006 (Bankr. S.D.N.Y.
The ordinance n°2017-748 dated 4 May 2017 to enter into force on 1 October 2017, completely reshapes the legal regime of the security agent, widely inspired by the security agent regime under OHADA law. Thus, French law continues its modernisation and attractiveness programme by creating a legal instrument able to compete with the security trustee involved in syndicated loans and bond issues in common law countries. The new provisions will clarify the legal regime of the security agent and reinforce creditors' protection, through:
The UK Supreme Court has recently overturned a much-criticised and controversial ruling of the Court of Appeal by finding an ambiguously worded advance payment bond effective in the case of insolvency. In doing so, it clarified the proper role and application of considerations of business common sense when interpreting commercial contracts. Where a clause is capable of two or more possible interpretations, Rainy Sky SA v Kookmin Bank held that the court should prefer the one which is most consistent with common business sense.