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Bondholders Beware? First Circuit Ruling’s Potential Adverse Impact on Puerto Rico’s Long-Term Restructuring Prospects

BN Lawyers

District Court decision affected the municipal markets in January 2018, when the court ruled that municipal debtors were permitted, but not required, to apply special revenues to pay related bonds. This blog provides some background and potential ramifications. Background. The original U.S.

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Debtors’ Sale of Assets: Stripping Sureties of their Subrogation Rights

ABI

In re Fieldwood Energy LLC ), the United States Court of Appeals for the Fifth Circuit held that the district court did not err in finding that the challenged bankruptcy courts confirmation order stripping some companies (collectively, the Sureties) of their subrogation rights were integral to the sale of the Debtors assetsand therefore moot. [2]