Adam L. Shiff Co-Authors “3rd Circ. Continues Momentive Trend For Secured Creditors”
Kasowitz Benson Torres partner Adam L. Shiff co-authored “3rd Circ. Continues Momentive Trend For Secured Creditors,” published in Law360. In the article, the authors discuss the recent Third Circuit opinion in In re Energy Future Holdings Corp., which highlights the pitfalls senior secured creditors may encounter when attempting to enforce lien subordination agreements in Chapter 11 reorganizations. In a previous article, the authors discussed the opinion of the Southern District of New York in In re MPM Silicones LLC (Momentive), and its potential effects on intercreditor agreements and reorganizations. The authors explain how the court’s opinion in Energy Futures Holdings, by firmly adhering to the language of the contract in determining its applicability to forms of distribution that were not at issue in Momentive, may affect future restructurings in new and perhaps unpredictable ways.
Adam L. Shiff, partner at Kasowitz Benson Torres, focuses his practice on all aspects of bankruptcy and restructuring, including representing debtors, formal and informal committees of creditors and equity securities holders, trustees, investors and purchasers of distressed businesses. Over the past 25 years, he has represented major parties in interest in high-profile U.S. restructuring and bankruptcy proceedings such as LightSquared, Caesars Entertainment, Adelphia, Eastman Kodak, Borders, Capmark Financial, WorldCom, Residential Capital, Linens ‘n Things, Marvel Entertainment, and Trump Entertainment Resorts.