Can equity holders retain their stake in bankruptcy without fully repaying creditors? The SDNY Bankruptcy Court just weighed in, tackling the new-value exception in Eletson Holdings.
In this latest piece for the American Bankruptcy Institute Journal, Vincent J. Roldan, Partner in Mandelbaum Barrett PC’s Bankruptcy & Creditors’ Rights and Banking & Financial Services groups, and Ava Goldberger, Law Clerk in the same groups, break down the court’s analysis of whether shareholder contributions qualified as new, substantial, and necessary under the law.
Read their full insights here.