Following a nine-day trial, Kobre & Kim clients secured a significant victory in the AIG Financial Products (AIG FP) bankruptcy case.
A Delaware court deemed AIG's asserted US $37+ billion claim should be treated as an equity investment rather than genuine debt and, in addition, equitably subordinated AIG’s claim to our clients’ claims.
Our clients seek hundreds of millions, which will be determined in a second phase of the case.
As liability management exercises fuel increasingly aggressive cross-border creditor disputes, Kobre & Kim secured a significant victory for clients TMF Trustee Limited and Hunkemöller International B.V. in one of the first major English decisions to emerge from this trend.
The ruling signals a willingness to defer to parallel foreign proceedings and suggests that distressed disposals at a defensible value may prove difficult to unwind.
Economic volatility across Latin America is driving a new wave of restructurings that expose Chinese investors to complex, cross-border disputes affecting recoveries.
Because many companies operate through offshore structures and hold assets across jurisdictions, effective recovery strategies often require coordinated insolvency proceedings, while navigating growing geopolitical and regulatory sensitivities in strategic sectors, to protect value and maximize recoveries.
Global bond issuers looking to restructure their debt have often turned to English courts, relying on debtor-friendly rules such as the ability to cram down creditors.
Two recent English court decision, however, are improving prospects for global bondholders.
Creditors who are willing to take swift and forceful action against even the biggest players can see the greatest chances of success.
