Because it is the first circuit decision assessing uptiering, the Serta opinion is expected to receive careful consideration from other courts, and the ruling is likely to reverberate well beyond the Fifth Circuit. Beyond striking down the transactions based on non-bankruptcy contract and finance principles, the ruling reaffirmed the primacy of the Bankruptcy Code's priority schemes and equal treatment principles.
Of particular importance is that the court reviewed and reversed the transactions well after confirmation of the plan, striking a blow to the doctrine of equitable mootness and perhaps encouraging creditors to appeal confirmation orders. Because the court specifically preserved the excluded lenders' claims and prohibited indemnification by the debtor, uptiering and other similar transactions could become cost-prohibitive.
Listen as this experienced panel of finance and restructuring attorneys explains the Serta decision's impact on important bankruptcy reorganization issues.
Speakers:
- Gianfranco Finizio, Partner, Lowenstein Sandler LLP
- Kelly E. Moynihan, Counsel, Lowenstein Sandler LLP
- Richard Newman, Managing Director, Alvarez & Marsal
- Conrad Ragan, Director, Alvarez & Marsal
Time: 1-2:30 p.m. ET
*Disclaimer: This event is open to the public but requires a registration fee.
