Milbank Financial Restructuring and Litigation & Arbitration partner Alex B. Lees and Financial Restructuring partner Sinjini Saha recently authored an article titled “CNH v Cleveland: Impact of Court of Appeals Decision on Out-of-Court European High Yield Restructurings,” for Butterworths Journal of International Banking and Financial Law (BJIBFL). The article, published February 2021, provides an in-depth look at the impact of the Court of Appeals decision on out-of-court European high yield restructurings in relation to CNH v Cleveland.
In 2020, a US court determined that minority noteholders’ rights to receive principal and interest on their notes survived a “strict foreclosure” and cancellation of notes, undertaken by the indenture trustee at the direction of a majority of noteholders. The article considers the potential effect of that decision on out-of-court, majority-led share pledge enforcements, which are key debt-restructuring tools in the European market.
