News & Analysis as of

Commercial Bankruptcy Cramdown Debt Restructuring

Jones Day

Adler: English Court of Appeal Overturns Restructuring Plan

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The Situation: The Adler Group sought to restructure more than €6 billion of debt by means of a UK restructuring plan ("RP"), to give itself a runway for a planned wind-down and asset sales, leading to an enhanced return for...more

Hogan Lovells

Its (not) a GAS: UK High Court refuses to sanction HMRC-cramming restructuring plan

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HMRC has successfully opposed a restructuring plan (“Plan”) brought by The Great Annual Savings Company Limited (“GAS” or “the Company”) under which HMRC would have been crammed down as a dissenting creditor. The Court held...more

Latham & Watkins LLP

Cramming Down Pension Liabilities: The Final Frontier?

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The Part 26A restructuring plan has introduced significant cross-class cramdown powers that may impact the defined benefit pension arrangements in the UK. As the UK looks set to enter a new restructuring cycle, the...more

Latham & Watkins LLP

Schemes and Restructuring Plans: Where Are We Now?

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The forecast for the English scheme and plan looks set fair despite concerns around Brexit turbulence. The restructuring market’s appetite for Part 26 schemes of arrangement and Part 26A restructuring plans shows no...more

Latham & Watkins LLP

France Publishes Restructuring and Insolvency Law Reform Ordinance

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Ordinance 2021-1193, which effects into law the European Directive on preventive restructuring frameworks, applies to proceedings opened from 1 October 2021. Key Points: ..Certain preventive mechanisms are...more

Dorsey & Whitney LLP

Bankruptcy Topics In Distressed Real Estate

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Bankruptcy cases involving commercial real estate present a multitude of problems. Those problems typically arise in the context of voluntary cases filed under chapter 11 of the Bankruptcy Code, 11 U.S.C. §§ 101-1532...more

Latham & Watkins LLP

High Court Declines to “Cram Down” Shareholders in Proposed Part 26A Restructuring Plan of Oil Company

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The decision provides new judicial guidance for determining the boundaries of cross-class cram down tests. On 28 June 2021, the High Court declined to sanction a restructuring plan proposed by Hurricane Energy plc...more

Jones Day

In Brief: On Remand, Momentive Bankruptcy Court Rules That Cramdown Notes Should Bear "Process Efficient" Market Interest Rate

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In Momentive Performance Materials Inc. v. BOKF, NA (In re MPM Silicones, L.L.C.), 874 F.3d 787 (2d Cir. 2017), cert. denied, 138 S. Ct. 2653 (2018), the U.S. Court of Appeals for the Second Circuit affirmed a number of lower...more

Perkins Coie

In re Fagerdale USA-LOMPOC Inc.: Defensive Purchase of Claims to Avoid Cramdown Deemed Not “Bad Faith”

Perkins Coie on

A secured lender facing the prospect of having the essential provisions of its loan re-written in a Chapter 11 plan of reorganization will look for options to prevent or minimize the likelihood of such a revision. Chapter 11...more

Jones Day

Business Restructuring Review | September–October 2018

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In This Issue: Caveat Emptor—Anti-Assignment Clause Renders Transferred Claim Unenforceable - In In re Woodbridge Group of Companies, LLC, 2018 WL 3131127 (Bankr. D. Del. June 20, 2018), the bankruptcy court ruled...more

Jones Day

Second Circuit Issues Key Cramdown Interest Rate Ruling

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In Momentive Performance Materials Inc. v. BOKF, NA (In re MPM Silicones, L.L.C.), 2017 BL 376794 (2d Cir. Oct. 27, 2017) ("Momentive"), the U.S. Court of Appeals for the Second Circuit, in a long-anticipated decision,...more

Kramer Levin Naftalis & Frankel LLP

Second Circuit Momentive Decision Adopts Two-Step Test for Cramdown Rate; Creates Make-Whole Circuit Split

On October 20, 2017, the U.S. Court of Appeals for the Second Circuit issued a long-awaited decision in In re MPM Silicones, LLC (“Momentive”) holding that, with one important exception, that the plan of reorganization...more

Patterson Belknap Webb & Tyler LLP

Second Circuit Addresses Key Chapter 11 Plan Issue

It is a unique characteristic of debt restructuring under Chapter 11 of the Bankruptcy Code that a majority of a class of creditors can accept a modification of the terms of the debts owed to the class members, as provided in...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

CFTC Comparability Determination on EU Margin Requirements and a Common Approach on Trading Venues - On October 13, 2017, the U.S. Commodity Futures Trading Commission ("CFTC") announced determinations by the CFTC and the...more

Orrick, Herrington & Sutcliffe LLP

Delega al Governo per la Riforma delle discipline della crisi di Impresa e dell’insolvenza

L'11 ottobre 2017 è stata definitivamente approvata dal Parlamento la legge delega per la riforma organica delle procedure concorsuali e della disciplina sulla composizione della crisi da sovraindebitamento([1]) (la "Legge");...more

Brownstein Hyatt Farber Schreck

Ninth Circuit Holds That Valuation of Secured Creditor’s Collateral in Chapter 11 Need Not Be Based on Property’s Highest and Best...

On May 26, 2017, an en banc panel of the Ninth Circuit Court of Appeals issued an opinion with important ramifications for secured lenders. The Ninth Circuit held that for purposes of determining the amount of a secured...more

Latham & Watkins LLP

Spain’s Improved Insolvency Regime Gains Momentum

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Recent piece-meal amendments to the Spanish Insolvency Act 2003 seem to have cumulated into a restructuring solution that is starting to be considered predictable, quick and fair, especially when compared to the pre-amendment...more

Latham & Watkins LLP

European Restructuring Landscape Improves with Multiple Reforms

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In light of the UK’s cram down and director-friendly processes, in particular its scheme of arrangement model, major European economies such as France, Germany and Italy have worked hard to develop regimes that give greater...more

Latham & Watkins LLP

Italy Significantly Amends Debt Restructuring and Bankruptcy Proceedings

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Material changes to the Italian bankruptcy law will likely result in increased interest of investors in the distressed market. The Italian legislators passed significant amendments to the legal framework applicable to...more

Baker Donelson

Claim Purchasing as a Strategy to Avoid a Cramdown

Baker Donelson on

While there are many factors that can lead a business or individual to file a chapter 11 bankruptcy petition seeking to reorganize a business, often times, particularly in a single-asset real estate case, the primary impetus...more

Skadden, Arps, Slate, Meagher & Flom LLP

"District Court Decision on MPM Silicones Bankruptcy Case Highlights Risks for Secured Lenders"

In a May 4, 2015, decision, the U.S. District Court for the Southern District of New York rejected secured lenders’ appeals of a controversial bankruptcy court decision confirming the Chapter 11 plan of reorganization of MPM...more

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