Second Circuit affirms bankruptcy court’s denial of loan trustee’s attempts to obtain payment of make-whole amount

On September 12, 2013, in the American Airlines case, the US Court of Appeals for the Second Circuit affirmed an order of the United States Bankruptcy Court for the Southern District of New York (a) authorizing the debtor to use proceeds of postpetition financing to repay prepetition debt without payment of amake-whole amount, and (b) denying a creditor’s request for relief fromthe automatic stay.  

Background Facts

Filed under:
USA, Insolvency & Restructuring, Litigation, Chadbourne & Parke LLP, Bankruptcy, Debt, Default (finance), American Airlines, Second Circuit, United States bankruptcy court
Authors:
N. Theodore Zink, Jr.
Location:
USA
Firm:
Chadbourne & Parke LLP