Case Study: In Re DBSD North America

Law360, New York (February 28, 2011, 1:40 PM EST) -- On Feb. 7, 2011, U.S. Court of Appeals for the Second Circuit issued an opinion on two consolidated appeals from the order confirming the plan of reorganization in In re DBSD North America Inc.[1] The court struck down a plan of reorganization with so-called gifting provisions in which a senior class shares its distribution with an out-of-the-money junior class as violating the absolute priority rule.

The Second Circuit also upheld the lower court’s “designation” (i.e., disqualification) of the blocking vote cast by a competitor of the...
To view the full article, register now.