Presentation Webinar: Implications from the Enron Bankruptcy Litigation

January 30, 2008

On January 30, 2008, in connection with Deal Flow Media, our partner, Trish O'Prey spoke at a live webinar concerning Legal Liability: Risks for Lenders, Advisors and Secondary Traders in Distressed Debt Investments.

Recently, several decisions in the Enron bankruptcy case have injected uncertainty into the landscape of trading in claims and bank debt. One appeal held that the risk of equitable subordination and disallowance is "personal" to the bad actor and does not travel with a claim if that claim was sold. However, if the claim was assigned, equitable subordination and disallowance risk does travel with the claim. This presentation discussed the district court's decision as well as the possible implications for the bank debt, bond and claims trading markets.

Creditor Defenses
Current Market Trading Convention
Distinction Between an Assignment and a Sale
Reactions & Implications of the Decision