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District Court Affirms Cramdown Interest Rate Calculation
On May 5, 2015, United States District Judge Vincent L. Bricetti affirmed the confirmation order issued by United States Bankruptcy Judge Robert D. Drain in the MPM Silicones LLC (Momentive' Chapter 11 cases. We discussed the facts and analyzed Judge Drain's ruling with respect to the applicable cramdown interest rate to be applied to secured claims under section 1129(b)(2)(A)(i) of the Bankruptcy Code in a January 2015 article in this newsletter (32 The Bankruptcy Strategist 3 (January 2015)), http://bit.ly/1Od6TWC. On appeal, the senior lien appellants argued that the plan of reorganization confirmed by Judge Drain violated section 1129(b) by using a “formula approach” to calculate the cramdown interest rate, and, in the alternative, by calculating the cramdown interest rate under the formula approach incorrectly.
The Bankruptcy Court's Analysis
Judge Drain held, among other things, that applicable rate should follow the formula approach laid out by the United States Supreme Court in Till v. SCS Credit Corp., 541 U.S. 465 (2004) where the cramdown interest rate is calculated by augmenting'a risk-free (or low-risk) base rate “to account for the risk of nonpayment posed by borrowers in the [] financial position of the debtor.” Id. at 471.
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
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Removing Restrictive Covenants In New York
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