Partners Marc Powers and Mark Kornfeld, and Associates Ferve Ozturk and Elizabeth Howe are the authors of an article published by The Hedge Fund Law Report on March 5, 2015. The article, headlined “A New Look at an Old Standard: The Power of Minority Bondholders Under the Trust Indenture Act,” analyzes two recent decisions in the Southern District of New York that interpret a provision of the Trust Indenture Act of 1939 favorably to minority bondholders in a restructuring.
Those decisions bar any non-consensual changes to a bond indenture that would affect any bondholder’s ultimate payment rights in the context of an out-of-court restructuring. These cases may signal a new trend by distressed debt investors in their litigation strategy to obtain greater value for their investments.
Read the full article.