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In 2020, a US court determined that minority
noteholders rights to receive principal and interest on their
notes survived a strict foreclosure and cancellation of
notes, undertaken by the indenture trustee at the direction of a
majority of noteholders. In this article, we consider the potential
effect of that decision on out-of-court, majority-led share pledge
enforcements, which are a key debt-restructuring tool in the
European market.
INTRODUCTION
The Court of Appeals decision in
CNH Diversified
Opportunities Master Account, LP v Cleveland Unlimited, Inc,
2020 WL 6163305 (NY Oct. 22, 2020) represents a significant