Opinion White Paper on Recent Judicial Opinions Relating to TIA Section 316(b)

Twenty-eight law firms, including Ropes & Gray, have developed a white paper that provides guidance to practitioners in their consideration of the application of recent judicial opinions relating to Section 316(b) of the Trust Indenture Act of 1939 (TIA).  Specifically, the recent decisions of the United States District Court for the Southern District of New York in the Marblegate and Caesars Entertainment cases contain language that suggests a significant departure from the widely understood meaning of TIA Section 316(b) that has prevailed among practitioners for decades.  These cases have introduced interpretive issues that have disrupted established opinion practice.

The white paper presents a set of general principles that can guide practitioners until such time as the interpretive questions raised by these recent cases are resolved through future judicial opinions and/or legislative action.