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
Continue Reading Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 2)
High Yield Debt
Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 1)
By Ben Feder on
The treatment of make-whole premiums in solvent debtor chapter 11 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…
Continue Reading Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 1)
Two Important Rulings on Payment of Indenture Trustee Fees in Chapter 11 Cases
By Ben Feder & Eric R. Wilson on
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. Federal law requires that public debt be issued under …
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New York Court of Appeals Splits From Second Circuit on Minority Bondholders’ Rights in Out of Court Restructurings
By Ben Feder on
Posted in High Yield Debt
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,…
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Delaware Judge Rejects Challenge to Payment of Fees for Indenture Trustee in Southeastern Grocers Chapter 11 Case
By Ben Feder on
Posted in High Yield Debt
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. As part of the deal with the holders…
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Energy Future Holdings – More Bad News for Bondholders on Make-Whole Premiums
By Ben Feder on
Posted in High Yield Debt
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 …
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Energy Future Holdings Make-Whole Ruling Extends Rationale of Important SDNY Decisions to Delaware
By Ben Feder on
Posted in High Yield Debt
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…
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We’ve Seen This Movie Before – The Return of Covenant Lite and PIK-Toggle Debt
By Ben Feder on
Posted in High Yield Debt
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…
Continue Reading We’ve Seen This Movie Before – The Return of Covenant Lite and PIK-Toggle Debt