Creditors May Not Get All They're Owed After Tribune Ruling
Law360 (September 2, 2020, 5:38 PM EDT) -- You can't always get what you want, or what you thought you were owed under a subordination agreement, according to the U.S. Court of Appeals for the Third Circuit in its recent decision in In re: Tribune Co., when it affirmed the cramdown of the media conglomerate's Chapter 11 plan of reorganization.
In its Aug. 26 opinion, the court rejected arguments that the plan violated Sections 510(a) and 1129(b)(1) of the U.S. Bankruptcy Code by failing to fully enforce a series of prepetition debt subordination agreements and, in the alternative, that the plan unfairly discriminated against certain senior noteholders.
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