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87 prior to maturity—following an automatic acceleration triggered by the borrower's bankruptcy filing. In In re Energy Future Holdings Corp., 842 F.3d 247 (3d Cir. 2016), the Third Circuit held that noteholders were entitled to payment of make-whole premiums that became due when the issuers opted to refinance the notes after filing for bankruptcy, notwithstanding the fact that the payment of the notes was accelerated by the bankruptcy filing. In In re MPM Silicones, L.L.C., 874 F.3d 787 (2d Cir. 2017), rehearing denied, No. 15-1824 (2d Cir. Dec. 11, 2017) ("Momentive"), the Second Circuit affirmed the determinations of the lower courts that certain noteholders were not entitled to payment of make-whole premiums under facts similar to those relevant to the Third Circuit's analysis in Energy Future Holdings Corp., arguably creating a circuit split on the enforceability of make-whole provisions after a bankruptcy acceleration. In June of 2018, the U.S. Supreme Court declined to review the substantive merits of the Momentive decision, denying petitions for certiorari filed by the indenture trustees for the noteholders who were denied a make-whole premium. Furthermore, Section 502(d) provides that a claim of either a transferee of an avoidable transfer or an entity from whom property is recoverable under certain Sections of the Bankruptcy Code will not be allowed if the claimant has not paid the amount or turned over the property received. Such claimant may file a proof of claim, but Section 502(d) will disallow such claim until the claimant repays any payment or returns the transferred property. Because Section 502(d) explicitly refers to transfers "avoidable" (and property "recoverable") and not to transfers that have actually been avoided (or property actually recovered), a trustee need not have actually avoided the transfer (or recovered the property) in order to object to a claim. See, e.g., El Paso v. America W. Airlines, Inc. (In re America W. Airlines, Inc.), 217 F.3d 1161 (9th Cir. 2000). Finally, it is important to note that Section 502(d) applies only to avoidable transfers made and liens granted by a debtor and not to obligations incurred by a debtor. 11 U.S.C. § 502(d).

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