“Second Circuit Rules in Favor of Tax Indemnity Agreement Claims,” Pratt’s Journal of Bankruptcy Law
September 2010
Richard G. Smolev and Stewart B. Herman authored the article "Second Circuit Rules in Favor of Tax Indemnity Agreement Claims," in the September issue of Pratt’s Journal of Bankruptcy Law. The article discusses a decision by the U.S. Court of Appeals for the Second Circuit, persuaded by arguments advanced by a Kaye Scholer team, that reversed two lower courts to uphold Tax Indemnity Agreement bankruptcy claims raised by Owner Participants in leveraged leases of aircraft to Delta Air Lines, Inc. In so doing, the Court ruled that the leveraged-lease debtholders' claims based on Stipulated Loss Value did not require that the Tax Indemnity Agreement bankruptcy claims be excluded under the terms of the Tax Indemnity Agreements.
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