EFH Ruling Impairs Creditor Reliance On Indenture Trustees

Law360, New York (November 12, 2015, 11:55 AM EST) -- On Nov. 2, 2015, on the eve of Energy Future Holdings Corp.’s confirmation trial, the Delaware bankruptcy court ruled that where a majority of bondholders direct an indenture trustee to withdraw its confirmation objections, the remaining minority who did not file independent objections to confirmation may not step in to press the indenture trustee’s objections. This ruling not only forecloses the litigation surrounding the minority bondholders’ objections in the EFH case, but could also serve, as a practical matter, to impose additional filing requirements on creditors in future cases who rely on indenture trustees to press their claims.


The dispute...

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!


Related Sections

Law Firms