Two Recent District Court Decisions Give New Ammunition to Noteholders Opposing Nonconsensual Out of Court Restructurings

    View Authors February 2015

    Unsecured noteholders were recently handed two separate victories by a highly influential District Court. Under the court’s holdings, dissenting unsecured noteholders can now use the Trust Indenture Act in order to oppose nonconsensual out-of-court restructurings. These cases strengthen the hands of unsecured noteholders and may lead to fewer out-of-court restructurings and to more bankruptcy filings.