Keeping Marblegate In Perspective

Law360, New York ( July 20, 2015, 3:39 PM EDT) -- Involuntary debt restructurings that have the effect of impairing a bondholder's right to receive payment may violate the Trust Indenture Act. This was recently held in the Marblegate/Education Management Corp. bondholder litigation. A first read of the case suggests potentially problematic implications. A deeper analysis shows a less troubling decision. The case is also relevant for the 144A-for-life market that is technically not subject to the statute....

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