Intercreditor disputes in bankruptcy are common. Typically, however, they center around predictable disagreements between senior or junior classes of creditors such as valuation battles or lien perfection challenges. A recent decision in the Delaware ... Read full article
The allowance of postpetition interest in solvent debtor chapter 11 cases has become an important issue in recent years for corporate issuers, bondholders and other creditors. This post will examine a recent decision in the Hertz case by Judge Mary ... Read full article
The treatment of make-whole premiums in chapter 11 cases in solvent debtor cases has become an important issue in recent years for corporate issuers and bondholders. This post will examine a recent decision in the Hertz case by Judge Mary Walrath of the ... Read full article
Two recent judicial decisions, Sanchez Energy and Tribune Media , highlight the challenges faced by indenture trustees and their professionals in chapter 11 cases where there are no recoveries to noteholders. ... Read full article
The New York Court of Appeals recently handed down an important opinion on out of court restructurings involving bond debt. In CNH Diversified Opportunities Master Account, L.P., v. Cleveland Unlimited, Inc. , the Court of Appeals, in a 4–3 ruling, ... Read full article
Southeastern Grocers (operator of the Winn-Dixie, Bi Lo and Harvey’s supermarket chains) recently completed a successful restructuring of its balance sheet through a “prepackaged” chapter 11 case in the District of Delaware. ... Read full article
For the second time in the past few months, Judge Christopher Sontchi has dashed the hopes of certain creditors in the Energy Future Holdings (“ EFH ”) chapter 11 case that they would be paid a make-whole premium worth over $400 million . ... Read full article
Judge Christopher Sontchi issued a notable opinion last week in the bankruptcy case of Energy Future Holdings Corp. , et al . (“EFH”), Case No. 14-10979 (D. Del.), ruling that the repayment in full of certain senior secured notes did not trigger an ... Read full article
Even as the financial crisis of 2008-09 began to ebb, the so-called “wall of debt” loomed large . Hundreds of billions of dollars of leveraged and high yield debt issued during the irrational exuberance era was coming due by 2014, threatening to drive up ... Read full article
