With Interest Rates On the Rise, Reinstatement Will Again Become An Attractive Restructuring Strategy

To formulate a reinstatement plan that will survive challenges, debtors and creditors should heed the lessons from two high-profile reinstatement cases from the Southern District of New York that were decided just months apart: Charter Communications and Young Broadcasting.

12 minute read November 01, 2023 at 12:03 AM
By
Stephen Selbst, Steven Smith and Luc Pierre-Louis
With Interest Rates On the Rise, Reinstatement Will Again Become An Attractive Restructuring Strategy

With interest rates on the rise, and the availability of inexpensive credit diminishing, reinstatement under Bankruptcy Code §1124(2) — one of the two methods in the Bankruptcy Code to accomplish a "cram-up" Chapter 11 plan of reorganization — will again become an attractive restructuring strategy.

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