Delaware Court Permits Cancellation of Concord Real Estate CDO Notes | Practical Law

Delaware Court Permits Cancellation of Concord Real Estate CDO Notes | Practical Law

An update on the Delaware Court of Chancery's decision in Concord Real Estate CDO 2006-1, et al. v. Bank of America in which the Court permitted collaterialized debt obligation sponsors to voluntarily cancel certain notes to circumvent a par coverage test because the terms of the indenture did not expressly prohibit the cancellation.

Delaware Court Permits Cancellation of Concord Real Estate CDO Notes

Practical Law Legal Update 5-502-7558 (Approx. 3 pages)

Delaware Court Permits Cancellation of Concord Real Estate CDO Notes

by PLC Finance
Published on 08 Jul 2010Delaware
An update on the Delaware Court of Chancery's decision in Concord Real Estate CDO 2006-1, et al. v. Bank of America in which the Court permitted collaterialized debt obligation sponsors to voluntarily cancel certain notes to circumvent a par coverage test because the terms of the indenture did not expressly prohibit the cancellation.