July 15, 2015
Special counsel Benjamin D. Feder’s blog post, “Energy Future Holdings – More Bad News for Bondholders on Make-Whole Premiums” was included in Rust Omni Bankruptcy Today’s newsletter, which provides access to recent significant chapter 11 case filings, relevant restructuring news and samples of some our current distressed company profiles. Originally published in Kelley Drye’s Bankruptcy Law Insights blog, the post discusses Judge Christopher Sontchi’s decision that Energy Future Holdings had no obligation to pay back a make-whole premium worth more than $400 million in its chapter 11 bankruptcy. The decision demonstrates that only clear and express language in applicable debt documents can serve to support a claim for payments, and that the automatic acceleration of debt due to bankruptcy cannot be undone for purposes of imposing make-whole premium liability on debtors.
To read the full blog post, please click here.