Executive Summary
Executive Summary
USA, Insolvency & Restructuring, Litigation, Tax, Weil Gotshal & Manges LLP, Internal Revenue Service (USA), Internal Revenue Code (USA), Supreme Court of the United States
In early November, the Ninth Circuit held in In re New Investments, Inc. that a debtor was required to “cure” defaults to an agreement using a post-default interest rate, overturning its prior, decades-old decision In re Entz-White Lumber & Supply, Inc., which had held that a debtor could cure agreements at pre-default interest rates.
Background
Creditors seeking to file an involuntary petition against a debtor may want to consider doing their due diligence before using it as a tool in their ongoing disputes with a debtor.
USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Due diligence, Bad faith, Collateralized debt obligation, United States bankruptcy court, US District Court for District of Delaware