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ARTICLE · 05 FEBRUARY 2024

Minority Holders' Challenge To Wesco's Multi-Step Uptiering Transaction Largely Survives Summary Judgment

McDermott Will & Schulte
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In two opinions issued earlier this month, Judge Marvin Isgur of the Bankruptcy Court of the South District of Texas denied motions for summary judgment.

United StatesInsolvency/Bankruptcy/Re-Structuring
Douglas S. Mintz
Douglas S. Mintz
Peter J. Amend
Peter J. Amend
Abbey Walsh
Abbey Walsh
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Executive Summary

In two opinions issued earlier this month, Judge Marvin Isgur of the Bankruptcy Court of the South District of Texas denied motions for summary judgment. The movants sought to ratify and validate Wesco's uptiering transaction that resulted in the payment, subordination and lien stripping of Wesco's existing pre-exchange notes. The Court will focus at trial on whether or not the multi-step transaction should be treated as one integrated transaction and how to interpret certain ambiguous provisions of Wesco's note indentures. See In re Wesco Aircraft Holdings, Inc., et al. v. SSD Investments Ltd., No. 23-90611, 2024 WL 156211 (Bankr. S.D. Tex. Jan. 14, 2024).

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