The Bankruptcy Strategist
Second Circuit Reverses District Court in Marblegate, Making It Easier to Restructure Bonds Outside of a Chapter 11 Case
By Alan R. Glickman, David M. Hillman, Ronald B. Risdon and Minji Reem
On Jan. 17, 2017, in a closely watched dispute, the Second Circuit issued its long-anticipated decision in Marblegate Asset Management, LLC v. Education Management Finance Corp., construing Section 316(b) narrowly, holding that it only prohibits "non-consensual amendments to an indenture's core payment terms" and does not protect noteholders' practical ability to receive payment.
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