SFIG Submits Amicus Brief on Involuntary Petition Filed against Taberna Preferred Funding IV, Ltd.

SFIG Submits Amicus Brief on Involuntary Petition Filed against Taberna Preferred Funding IV, Ltd.

Today, September 7th, SFIG submitted an amicus brief to the U.S. Bankruptcy Court for the Southern District of New York (“the Court”). In this brief, SFIG highlights that the attempt by senior note holders to put Taberna Preferred Funding IV, Ltd (“Taberna”) in bankruptcy is an abuse of the reorganization process. Taberna’s structure as a non-recourse securitization that lacks the capacity to be reorganized and should be liquidated by its terms is a fundamental and universally accepted and agreed aspect of securitization transactions.  The potential erosion of this fundamental tenet of the securitization industry is not just of significant import to the Taberna noteholders who will shoulder the burden of the Petitioning Creditors’ strategic maneuver here of seeking access to an unanticipated bankruptcy forum; it is very much important to SFIG and the securitization markets and industry at large. Given that the ability to securitize loans is fundamentally important to banks, borrowers, and the national economy, SFIG believes that this attempt to change the rules governing these type of investments should be dismissed.

Please contact Sairah.Burki@sfindustry.org with any questions.

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