Latest Uptier Decisions in Serta and Mitel Remind Contract Language Matters
By EsqSocial Corporation 08/01/25
The caselaw on “uptiers” as liability management exercises (LMEs) grew by two opinions on the last day of 2024. In Serta, the Fifth Circuit reversed the bankruptcy court’s blessing of the pre-bankruptcy uptier and post-reorganization indemnification of the parties thereto. The Fifth Circuit also remanded the case for further consideration of the excluded lenders’ breach of contract and implied covenant of good faith and fair dealing counterclaims, while suggesting that the merits of those...
By: Morrison & Foerster LLP