October 21, 2005

The U.S. Bankruptcy Court for the Southern District of New York in Manhattan recently issued a permanent injunction against the U.S. creditors of Jenner & Block client TXU Europe Ltd., a British utility company, thus blocking the creditors from taking legal action against its assets while it completes its overseas restructuring.

The court granted the injunction because U.S. bankruptcy law allows overseas debtors to block U.S. creditors from attaching their assets while they restructure in their native country.  TXU Europe is conducting its restructuring in the High Court of Justice of England and Wales. 

The court’s ruling was made possible when TXU Europe resolved objections raised by Merrill Lynch Capital Services Inc., which was the sole objector to the injunction.

Of Counsel Ronald DeKoven, Partner Elaine J. Goldenberg and Associate Victoria H. Jueds represented TXU Europe Ltd., along with the company’s New York-based litigation counsel.