Bankruptcy provides an opportunity for a fresh financial start. In that spirit, creditors’ contractual rights are often impaired. But what happens in those rare circumstances when a debtor is deemed solvent? According to a recent decision from the United States Fifth Circuit Court of Appeals in In re: Ultra Petroleum Corp., solvent debtors are fully bound by all financial obligations and nothing less. In those rare cases where a debtor is (or becomes) solvent, this decision creates a big win for creditors. …
Continue Reading Are Yield Maintenance and Make-whole Provisions in Jeopardy? Recent Fifth Circuit Decision Casts Serious Doubt on Enforceability of Such Loan Provisions in the Context of Bankruptcy.