3rd Circ. Continues Momentive Trend For Secured Creditors
Law360 (August 6, 2019, 2:53 PM EDT) -- In a previous article, we discussed the opinion of the U.S. District Court for the Southern District of New York in the MPM Silicones LLC, or Momentive, case and its potential effects on intercreditor agreements and reorganizations.
The Momentive court held that stock in a reorganized debtor given to junior noteholders was not subject to a turnover provision in a lien subordination agreement because such stock was not the result of a change in the collateral that diluted the collateral's value and therefore did not constitute "proceeds" of the collateral. That holding, we explained, could affect restructurings by incentivizing senior secured...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!