By Karol Denniston, Squire Patton Boggs LLP ( January 20, 2017, 3:32 PM EST) -- On Jan. 17, the U.S. Court of Appeals for the Second Circuit issued its highly anticipated ruling in Marblegate Asset Management LLC v. Education Management Corp. At issue in Marblegate was whether Education Management Corp. (EDMC) violated the Trust Indenture Act when it implemented a restructuring that impaired the rights of Marblegate Asset Management LLC (MAM). The Second Circuit reversed the district court's decision in favor of MAM, and held that EDMC's restructuring did not violate the TIA. The Second Circuit's majority opinion is narrow and finds that the TIA "prohibits only non-consensual amendments to an indenture's core payment terms." The dissenting opinion views the facts from a completely different perspective and states that Section 316(b) should protect bondholders from "collusively engineered" restructurings....