Cramdown of Subordination Rights After In re Tribune: The Interplay Between 11 U.S.C. 510(a) and 1129(b)(1)
A live 90-minute CLE video webinar with interactive Q&A
This CLE course will guide bankruptcy counsel in understanding the interplay between Bankruptcy Code Sections 510(a) and 1129(b)(1) and how a plan of reorganization can be confirmed even if it allocates to subordinated creditors some portion of the amount owed to a senior creditor under a pre-petition debt subordination agreement. The program will review In re Tribune, 972 F.3d 228 (3d Cir. 2020) and discuss the flexibility it may offer debtors and the leverage it may provide to subordinated creditors. The panel will also review open questions created by the Third Circuit's opinion.
- Relevant statutory provisions
- Section 510
- Section 1129
- The Tribune decision
- Determining unfair discrimination
- Practical considerations
- Subordinated lenders
- Senior lenders
- Non-bankruptcy remedies among creditors
The panel will review these and other pivotal issues:
- Will creditors be able to rely on pre-petition subordination agreements after In re Tribune?
- When does the "unfairly discriminate" standard apply versus the "fair and equitable" standard?
- What is unfair discrimination under a Chapter 11 plan, and how is it measured?
- Does it matter whether debt or liens are subordinated?
Carl T. Tullson
Skadden Arps Slate Meagher & Flom
Mr. Tullson represents clients in complex debt restructurings, troubled company mergers and acquisitions, and financing... | Read More
Mr. Tullson represents clients in complex debt restructurings, troubled company mergers and acquisitions, and financing transactions.Close
Cleary Gottlieb Steen & Hamilton
Ms. VanLare’s practice focuses on restructuring, insolvency, and bankruptcy litigation.| Read More
Ms. VanLare’s practice focuses on restructuring, insolvency, and bankruptcy litigation.Close