their claims are subordinate to the Second-Lien Notes holders'
claims. Second, the Senior-Lien Notes holders contend that the lower courts erroneously
applied a below-market interest rate ... their replacement notes. Third, the Senior-Lien
Notes holders challenge the lower courts' rulings that they are not entitled to a make-whole
premium. Finally, Debtors argue that we should ... dismiss these appeals as equitably moot.
We find merit only in the Senior-Lien Notes holders' contention with respect to the method
of calculating the appropriate interest rate
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therefore, affirmed.
p798] B
As a consequence of rejecting the Plan, the Senior-Lien Notes holders received
replacement notes which pay out their claim over time. [HN6] The Code permits ... rate selected by the lower courts for the Senior-Lien Note holders' replacement notes
was based on the "formula" rate. The bankruptcy court selected interest rates ... Senior-Lien Notes holders contend that because this rate is too low, the Plan is not
'fair and equitable" as required by § 1129(b). They argue that the lower courts
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EFTA01358954Set 10
2015-05-041p481w
determine the interest rate the LLC was
required to pay entities that held senior-lien notes: [2]-Although use of a formula approach
was approved by a plurality ... priority of notes the LLC issued and the court's determination that senior-lien note holders'
were not entitled to a make-whole premium, reversed the district court's judgment ... with
respect to the method of calculating the interest rate on the senior-lien note holders'
replacement notes, and remanded the case.
CORE TERMS: holder, subordinated, indenture, indebtedness, premium, senior
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offering the same loan to MPM on the open market.
11 The Senior-Lien Notes holders offered evidence that the market price for their notes dropped, respectively, from ... this inquiry.
12 We acknowledge that the lower courts grappled with the Senior-Lien Notes holders' evidence regarding MPM's quoted exit
financing, and made express their view that
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evaluate the
interest to be received on the replacement notes held by the Senior-Lien Notes holders.
The Debtors acknowledge that this might require, at most, $32 million of additional ... nearly $200 million they assert would be required to pay the Senior-Lien Notes
holders' make-whole premium, nor will any redistribution be required to the Subordinated
For internal
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01358969.pdf