November 1, 2020
By: Shane G. Ramsey and John T. Baxter
On July 30, 2018, the District of Delaware issued a decision in certain consolidated appeals in the Tribune Media Co. bankruptcy case.² The primary question in these appeals was whether the debtor’s confirmed plan unfairly discriminated against certain impaired senior note older creditors, whose senior status was attributed- 1ble to a pre-petition subordination agreement, in violation of 1129(b)(l) of the Bankruptcy Code.3 This decision instructs that a bankruptcy court may disregard any pre-petition subordination agreement and its provisions upon confirmation of a Chapter 11 plan over an impaired class of creditors’ objection.
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