Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistFeaturesBankruptcyLJN Newsletters

Second Circuit Directs Consideration of an 'Efficient Market' Interest Rate for <b><i>Momentive</i></b> Cramdown Plan

By Robert W. Dremluk
December 01, 2017

On Oct. 20, 2017, the U.S. Court of Appeals for the Second Circuit, in Momentive Performance Materials, Inc. v. BOKF, NA (In re MPM Silicones, L.L.C. “MPM”) –F.3d–, 2017 WL 4700314, Nos. 15-1682 (2nd Cir. Oct.20, 2017), reversed in part and remanded to the bankruptcy court an order confirming the Debtor's Chapter 11 plan of reorganization. The appellate court instructed the bankruptcy court to apply an “efficient market rate” of interest to the senior secured notes issued under the plan, if such a rate could be ascertained, in lieu of a “formula rate” of interest that had been applied. The Second Circuit affirmed the balance of judgment on appeal by denying any make-whole recovery, refusing to subordinate claims of certain second lien creditors and finding that the doctrine of equitable mootness did not apply.

Background

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.