Marblegate's Impact On TIA Guarantee Protections

Law360, New York (February 7, 2017, 12:22 PM EST) -- The Second Circuit's recent Marblegate decision does not analyze the issues concerning releasing or stripping a guarantee from a qualified indenture. While the opinion rejects the argument that impairment of a noteholder's practical ability to recover its principal and interest gives rise to a Trust Indenture Act violation, the opinion does not explicitly address the specific protections that the TIA provides to guarantees. Below, I provide my view on how Marblegate can be read as consistent with the statutory language....

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