http://www.bloomberg.com/news/articles/2015-12-07/caesars-among-firms-said-to-push-to-curb-lender-protection-rules?cmpid=yhoo.headline
"tried last month to insert an amendment into an early version of the landmark U.S. transportation bill that would’ve rolled back part of the 1939 law known as the Trust Indenture Act ...
Education Management may have to pay out junior creditors who didn’t go along with its out-of-court debt reorganization, hurting the investment value of KKR, which is among the company’s largest equity holders....
Although they were unsuccessful, some investors are worried that the companies could try to insert another version of the amendments into the U.S. government’s spending bill that needs to be passed by Dec. 11, the people said.
The companies’ “sole aim is to overturn several federal district court decisions that were not in their favor,” Andrew Milgram, managing partner of Marblegate Asset Management, said in a statement Monday. His firm won a court case against Education Management and could be affected by a change in the rules. The U.S. Court of Appeals for the Second Circuit has agreed to hear the company’s appeal of the ruling. ...
The changes would have made it more difficult for minority bondholders to challenge actions companies take in restructurings, according to a Dec. 4 research note by Winters and Bloomberg Intelligence analyst Philip Brendel.
Under the proposal, creditors would be protected by law only if a company reduced principal amounts, interest rates or maturity dates, according to a copy of the draft amendment published by Politico. If a company changed those attributes, bondholders would have the right to get paid back in full.
The Wall Street Journal reported earlier on Caesars’ lobbying efforts."