Kasowitz Secures Denial of CFPB’s Consent Judgment in National Collegiate Student Loan Trusts Case
Kasowitz, on behalf of investors in and other deal parties to the $15 billion National Collegiate Student Loan Trusts (“NCSLTs”), which securitize student loans, successfully opposed the Consumer Financial Protection Bureau’s (“CFPB”) proposed consent judgment with the NCSLTs. After a lengthy and hard-fought proceeding, Judge Maryellen Noreika of the United States District Court for the District of Delaware issued an order, on May 31, 2020, denying the CFPB’s request for entry of the consent judgment.
Kasowitz represents investors Angelo Gordon, Waterfall Asset Management, One William Street, and Libremax Capital, which hold over $1.8 billion in notes issued by the NCSLTs, in various actions concerning the management and control of the Trusts.
Said partner Michael Hanin, who leads the Kasowitz team along with partner Uri Itkin: “The proposed consent judgment represented an unprecedented gambit by the NCSLT’s residual equity owners to invert the securitization payment waterfall and trample the rights of investors and other deal parties. We are pleased with Judge Noreika’s decision.”
The Kasowitz team representing Angelo Gordon, Waterfall Asset Management, One William Street, and Libremax Capital is led by partners Michael Hanin and Uri A. Itkin and includes Special Counsel Henry Brownstein and associate Henry K. Parr.