Don’t Go Chasing (Debtor-Affiliate) Waterfalls: Second Circuit Applies 510(b) Subordination to Contribution Claims Arising from the Securities of an Affiliate of a Debtor

In a decision with significant implications for investors and underwriters alike, the Court of Appeals for the Second Circuit has held that contribution claims arising from the purchase and sale of a security of an affiliate of the debtor can and should be subordinated under section 51

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, Security (finance), Second Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Second Circuit Wyly’ing Out? Asset Freeze Order Doesn’t Violate the Automatic Stay

Recently, in SEC v. Miller, No. 14-4261-cv (2d Cir. Dec.

Filed under:
USA, Capital Markets, Insolvency & Restructuring, Litigation, White Collar Crime, Weil Gotshal & Manges LLP, Securities fraud, Second Circuit
Authors:
Andriana Georgallas
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Judge Scheindlin rules in Caesars that Trust Indenture Act bars “core” impairments; certifies the issue to the Second Circuit or what’s the deal with the caesars parent guarantee litigation? [part I]

“Render unto Caesar the things that are Caesar’s, and unto [CEC] the things that are [CEC’s] [?]” – Matthew 22:21 (as revised)

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Second Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Why won’t the courts apply the plain language of section 1141(C)? Second Circuit misses the chance to get it right in Northern New England Telephone Operations

Key Takeaway:  Second Circuit allows secured
creditors to opt out of chapter 11 and preserve their liens from discharge.

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Second Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Momentive Court Declines to Dismiss Creditors’ Appeals as Equitably Moot

In Momentive Performance Materials, the Second Circuit declined to dismiss as equitably moot the appeals of certain noteholders.

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Subordinated debt, Second Circuit, United States bankruptcy court
Authors:
David Nigel Griffiths
Location:
USA
Firm:
Weil Gotshal & Manges LLP
High Court Limits Scope of 546(e) Safe Harbor for Recipients of “Conduit” Transactions

Yesterday, the United States Supreme Court, in Merit Management Group, LP v. FTI Consulting, Inc., Case No. 16-784, ruled that the “securities safe harbor” under section 546(e) of the Bankruptcy Code, 11 U.S.C. §§ 101-1532, does not shield transferees from liability simply because a particular transaction was routed through a financial intermediary—so-called “conduit transactions.”

Filed under:
USA, Capital Markets, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, SCOTUS, Second Circuit, High Court of Justice, Seventh Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP