The issuer of a note that seeks bankruptcy protection is not intentionally defaulting on its obligation to redeem the note in full and does not automatically trigger an acceleration of the instrument, a U.S. bankruptcy judge for the District of Delaware has ruled.
However, Judge Christopher S. Sontchi, in a 35-page opinion in the March 26 adversary action captioned Delaware Trust v. Energy Future Intermediate Holding, said that in the first phase of an adversary proceeding, an electric utility holding company could not automatically waive default on those obligations and “decelerate” those notes.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]