A Narrow Reading of Lien Rights in Plan Distributions: Enforcing Intercreditor Waterfall Provisions in Bankruptcy

Boston Partner Jonathan Young, Co-Chair of the Firm's Bankruptcy, Restructuring and Insolvency Practice Group, and New York Partner Jason Ulezalka of the Firm’s Debt Finance Practice Group co-authored an article for The Journal of Bankruptcy Law discussing a recent opinion issued by the U.S. Court of Appeals for the Third Circuit regarding the enforcement of intercreditor agreements in bankruptcy. Young and Ulezalka provide drafting considerations for finance and restructuring practitioners and discuss a growing alignment of courts in the Second and Third Circuits as to the interpretation of intercreditor agreement provisions.

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