Momentive Noteholders’ Request to Change Vote Denied – You Can’t Have Your Cake and Eat It Too.

By | Zone of Insolvency | September 19, 2014

A recent decision in the Momentive cases explores the limitations of changing a vote pursuant to Bankruptcy Rule 3018. In that case, the first and 1.5 lien noteholders  initially voted to reject the debtors’ proposed plan of reorganization in order to pursue their claim for recovery of a “make-whole” payment they argued they were entitled to under the relevant indentures.

Purchasers at Bankruptcy Sales — They Can’t Be Bad and Expect to Be Protected As “good”

By | Wiley On Bankruptcy | September 18, 2014
Purchasers at Bankruptcy Sales — They Can’t Be Bad and Expect to Be Protected As “good”

Buyers of assets out of bankruptcy are typically a savvy and sophisticated group, and with their fresh capital, the darlings of debtors and creditors.  These buyers typically require that they be nominated as “stalking horses” and that they receive protection for their pre-sale due diligence efforts with expense reimbursements and topping fees.