Kirkland Alert Kirkland & Ellis LLP

Second Circuit Vacates Marblegate and Removes Uncertainty Surrounding Out-of-Court Restructurings

The U.S. Court of Appeals for the Second Circuit vacated and remanded a controversial district court decision that had held that the Trust Indenture Act (TIA) prohibits amendments to an indenture if the practical impact would be to eliminate a bondholder’s right to receive payment.