- Treatment of Make-Whole Premiums in Bankruptcy: A Bondholder Perspective
- October 2, 2017 | Authors: Edward P. Christian; R. Alex Brown
- Law Firms: Eversheds Sutherland (US) LLP - Atlanta Office; Eversheds Sutherland (US) LLP - New York Office
New York Law Journal
A case currently before the US Bankruptcy Court of the Southern District of Texas, In re Ultra Petroleum, has raised again the issue of how make-whole payments due from a borrower to bondholders, pursuant to the terms of credit documents governed by New York law, should be treated in the event of the borrower’s bankruptcy.In their article for the New York Law Journal, Eversheds Sutherland attorneys Edward Christian, Mark Sherrill and Alex Brown evaluate the case law and various arguments with respect to the validity of make-whole payments, and argue why make-whole payments should be allowable in bankruptcy.