Linklaters discusses Important Chapter 11 Decision
On August 26, 2014, the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) issued a notable decision in the chapter 11 cases of MPM Silicones, LLC and its affiliates (the “Debtors”) that could have far-reaching implications for future chapter 11 cases, particularly as it strengthens a debtor’s ability to cram down a dissenting class of secured creditors with new secured debt at a below market interest rate.
The Bankruptcy Court issued rulings on three issues that could negatively impact creditors in future cases:
The Bankruptcy Court held that the appropriate interest rate for debt to … Read more