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NEWS

August 10, 2010
Curtis Argues in Favor of DBSD Chapter 11 Confirmation Before Second Circuit Court of Appeals

 
New York, August 10, 2010 – A Curtis team of restructuring and litigation attorneys appeared recently before the Second Circuit Court of Appeals on behalf of the Official Committee of Unsecured Creditors of DBSD North America, Inc., et al. to argue in support of DBSD's confirmed plan of reorganization in appeals brought by DISH Network Corporation and Sprint Nextel Corporation seeking to set aside orders entered by Bankruptcy Judge Gerber in connection with confirmation of the plan. DISH sought reversal of an order that eliminated DISH's vote against the plan due to its behavior prior to confirmation as well as Bankruptcy Judge Gerber's finding that the plan of reorganization satisfied the feasibility and "cram down" requirements of the Bankruptcy Code.

Sprint, an unsecured creditor asserting a large litigation claim, sought reversal of the order confirming the plan of reorganization, arguing that the plan violated the Bankruptcy Code's absolute priority rule because the second lien noteholders made a "gift" to the Debtors' equity holders pursuant to the Debtors' plan without first satisfying the claims of unsecured creditors in full. Based on Judge Gerber's uncontested finding on the valuation of the Debtors, both unsecured creditors and equity were entitled to receive no distributions from the Debtors, absent gifting from the second lien noteholders. The Official Committee of Unsecured Creditors negotiated for and secured a meaningful distribution to unsecured creditors pursuant to the plan early in the Debtors' bankruptcy cases and supported confirmation of the plan of reorganization confirmed by Judge Gerber.

The arguments before the Second Circuit Court of Appeals were the culmination of nearly a year of litigation with respect to the confirmation of the DBSD plan of reorganization and the Bankruptcy Court's decisions eliminating DISH's vote against the plan.

The Curtis team representing the Official Committee of Unsecured Creditors of DBSD North America, Inc., et al. consisted of partner Steven J. Reisman, counsel Maryann Gallagher and associate Nicholas James from the Restructuring and Insolvency group, partner Theresa A. Foudy (who argued on behalf of the Committee) and associate Josh Joyce M. from the Litigation Group.
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