On August 24, 2023, the Second Circuit Court of Appeals issued its much-anticipated decision in Kirschner v. JP Morgan Chase Bank, holding that the syndicate term loans at issue were not securities. As noted in our earlier blog post, the SEC declined the court’s request to file an amicus brief, forgoing the opportunity to provide its views on the issue and influence the outcome of the appeal.[1]
U.S. Court of Appeals for the Second Circuit
Are Syndicated Term Loans Securities? The SEC Declines to Weigh in on Kirschner
By Robert Pommer & Robert Sutton on
Participants in the syndicated loan markets may have been relieved last month when the SEC declined to file the amicus brief requested by the Second Circuit Court of Appeals in Kirschner v. JP Morgan Chase Bank. In an unusual turn of events, the SEC choose not to weigh in on whether the syndicated term loans at issue are securities. In a July 18, 2023 letter to the court, the SEC explained that “despite the best efforts to respond to the court’s request, the Staff was not in a position to file a brief on behalf of the Commission.” Id. Whatever the reason, the SEC’s decision leaves the Second Circuit panel without the agency’s views, and to speculate over the agency’s reasons for its clearly very deliberate decision not to act.
2020 Proskauer Annual Review and Outlook for Hedge Funds, Private Equity Funds and Other Funds
By Asset Management Team on
Proskauer’s Private Investment Funds Group released its 2020 Annual Review. The yearly report provides a summary of some of the significant changes and developments that occurred in the past year in the private equity and hedge fund spaces, as well as certain recommended practices that investment advisers should consider…