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A federal district court in New York is currently hearing a case to determine if syndicated term loans are securities under US federal and state Blue Sky securities laws. The case (Marc S. Kirschner v. J.P. Morgan Chase Bank, N.A.) came about when borrowers, Millennium Health, LLC and certain of its affiliates (“Millennium”), in a widely syndicated loan went into bankruptcy. The bankruptcy trustee (the “Trustee”) to certain trusts formed as part of the bankruptcy restructuring brought suit against the lending syndicate, including J.P. Morgan Chase Bank (“J.P Morgan”), as one of the lead arrangers alleging the lenders misrepresented the information provided to the trust’s beneficiaries (as represented by the Trustee) to determine if they wanted to participate in the Millennium syndicate. The Trustee asserts that J.P. Morgan sold its participation of a loan to Millennium which they were aware was having substantial economic and legal difficulty.
Continue Reading You Say Loan Participation, I Say Securities, Let’s Call the Whole Thing Off

Picture this: it’s 1793. In England, George III is on the throne and the Bank of England issues the first ever ‘fiver’.  In the U.S.A, George Washington hosts the first US cabinet meeting as President and the capital moves from Philadelphia to Washington, D.C.  In France, the French Revolution is in full swing with King Louis XVI guillotined, and France becomes the first country to adopt the metric system.

And in Ireland, the Irish Stock Exchange is founded. Though of course, that is not to say that there weren’t other important things happening in Ireland at the time as well….
Continue Reading With-Hold on a second?! New ISE rule leads to automatic de-listing of debt securities at scheduled maturity