What’s in a Name? Court Holds That Despite Its Title, a Security Agreement Also Subordinated Junior Creditor’s Rights to Payment

On October 29, 2021, Judge Laura Taylor Swain, the presiding judge in the Puerto Rico bankruptcy case, ruled that approximately $2 billion in intragovernmental loan claims were subordinated to bonds issued by the Puerto Rico Highway and Transportation Authority (“HTA”) pursuant to an assignment and security agreement.1 The Court’s opinion

Filed under:
Puerto Rico, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP
Authors:
Mark C. Ellenberg , Michele C. Maman , Thomas Curtin , William J. Natbony
Location:
Puerto Rico
Firm:
Cadwalader Wickersham & Taft LLP