Milbank Litigation & Arbitration and Financial Restructuring partner Alexander Lees and Financial Restructuring partner Sinjini Saha recently authored an article titled “Court of Appeals Decision ‘injects uncertainty into a multi-trillion-dollar corporate debt market’” for Twenty Eagle, a new blog dedicated to the New York Court of Appeals.
The article discusses the implication of the recent Court of Appeals ruling in CNH Diversified Opportunities Master Account, L.P. v. Cleveland Unlimited, Inc. on out-of-court restructurings and financings. The Court’s 4-3 decision, according to the article, represents a “significant development in the area of law concerning when minority holders of a note issuance have the right to hold up an out-of-court, majority-approved debt restructuring of the note issuer.” The decision also has the potential to introduce “uncertainty with respect to a now-common tool for raising financing senior to the issuer’s note obligations.”
Mr. Lees and Ms. Saha also recently authored a client alert on the CNH v. Cleveland Unlimited decision.
