Notable Business Bankruptcy Rulings Of 2016


After filing for bankruptcy, Energy Future Holdings Corp. (“EFH”) proposed to refinance first-and second-lien notes without paying “make-whole” premiums provided for in the governing indentures designed to compensate the noteholders for early repayment of their notes. Aligning itself with a number of Southern District of New York courts (see In re MPM Silicones, LLC, 2014 BL 250360 (Bankr. S.D.N.Y. Sept. 9, 2014), aff’d, 531 B.R. 321 (S.D.N.Y. 2015)), the Delaware bankruptcy court ruled in 2015 that, although EFH had repaid the bonds prior to maturity, make-whole premiums were not payable under the bond indentures because the plain language of the indentures did not require the payment of a make-whole premium following a bankruptcy acceleration.