Recently, in Kurak v. Dura Automotive Sys., Inc., the United States Bankruptcy Court for the District of Delaware enforced subordination provisions against certain out-of-the-money subordinated noteholders.
DE Bankruptcy Court Enforces 'X-Clause'
Recently, the United States Bankruptcy Court for the District of Delaware enforced subordination provisions against certain out-of-the-money subordinated noteholders. The latter had asserted that the so-called 'x-clause' in the indenture provided them with a right to recovery under the plan of reorganization despite the fact that the senior noteholders would not be paid in full. The decision is significant for several reasons ...
By
Daniel J. DefranceschiThis premium content is locked for The Bankruptcy Strategist subscribers only
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