Second Circuit Reverses District Court in Marblegate, Making It Easier to Restructure Bonds Outside of a Chapter 11 Case

, The Bankruptcy Strategist


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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