Faegre Drinker Biddle & Reath LLP, a Delaware limited liability partnership | This website contains attorney advertising.
October 2020

CNH Diversified Opportunities Prevails in Restructuring Litigation Appeal

United States - New York

CNH Diversified Opportunities won a significant victory in October 2020 when the Court of Appeals for the State of New York reversed a grant of summary judgment previously awarded to defendant Cleveland Unlimited, instead granting partial summary judgment to Faegre Drinker client CNH and affirming their right to pursue a judgment for payment of principal and interest despite majority noteholders’ directed foreclosure.

The Court of Appeals held that CNH’s payment rights were not extinguished by a strict foreclosure undertaken by the indenture trustee, which purportedly cancelled their notes, because the purported cancellation of the notes absent dissenting minority note holders’ consent had “impermissibly terminated” the right to payment without their consent.

The case is CNH Diversified Opportunities Master Account, L.P. v. Cleveland Unlimited, Inc. (2020 NY Slip Op 05976)

Related Industries

The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Drinker Biddle & Reath LLP's cookies information for more details.