Marblegate Asset Management, LLC v. Education Management Finance Corp.

The question before this Court is whether Section 316(b) of the Trust Indenture Act (the “TIA”) prohibits Defendant-appellant Education Management Corporation (“EDMC”) from engaging in an out-of-court restructuring that is collusively engineered to ensure that certain minority bondholders receive no payment on their notes, despite the fact that the terms of the indenture governing those notes remain unchanged. Because the plain text of the statute compels the conclusion that it does, I would answer that question in the affirmative and uphold the judgment of the District Court. I therefore…