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USA - August 13 2012
In a recent contested matter in the case Home Valley Bancorp., Inc., Case No. 11-65126-fra7, pending in the US Bankruptcy Court for the District of Oregon, the Bankruptcy Court validated the vote and election of a Chapter 7 trustee candidate by a security holder where (a) the Indenture Trustee for the debt issue declined to exercise its right under the Indenture to vote for a Chapter 7 trustee, (b) the security holder acted openly and actively with respect to the election of its Chapter 7 trustee candidate, and (c) the Indenture Trustee did not object to such actions by the security holder.
USA - April 17 2012
In a recent case, In re BankAtlantic Bancorp., Inc. Litigation (Del.Ch. February 27, 2012), indenture trustees under multiple indentures of trust, as well as individual holders of trust preferred securities, sued to enforce certain successor obligor provisions that prohibited a bank holding company from selling “all or substantially all” of its assets unless the acquirer assumed the debt.
USA - March 1 2012
In a recent case, RBC Capital Markets, LLC v. Education Loan Trust IV et al., 2011 WL 6152282 (Del. Ch. Dec. 6, 2011), a holder of notes issued under an indenture claimed that the issuer caused the trust to pay excess and unauthorized fees that allegedly reduced the amount of interest payments to the noteholder.
USA - April 13 2010
On April 1, 2010, the New York Court of Appeals rejected holders' claims against an indenture trustee that could have meant new and greatly expanded duties and legal liability for indenture trustees.
