Halbhuber Authors Article On Recent Decision On Forced Debt For Equity Exchanges

Partner Harald Halbhuber (New York-Capital Markets) authored an article titled "Forced Debt for Equity Exchange Outside Bankruptcy Impairs Bondholder Payment Rights," for Twenty Eagle, a publication that covers news about the New York Court of Appeals.

The article, published on November 9, provides an analysis of a recent New York Court of Appeals decision on debt restructurings.

Read "Forced Debt for Equity Exchange Outside Bankruptcy Impairs Bondholder Payment Rights."

The recent decision of the New York Court of Appeals in CNH Diversified Opportunities Master Account, L.P. v. Cleveland Unlimited, Inc. provides important guidance for bond markets, creditor rights and debt restructurings.  It applies the "non-impairment" provision in bond indentures in the context of a forced debt for equity exchange through a majority-directed strict foreclosure, further developing the case law on out-of-bankruptcy restructurings following the Second Circuit's 2017 landmark