Recent case law reminds practitioners and lenders to pay careful attention when drafting prepayment premium provisions in debt instruments or risk having the premiums disallowed in a borrower’s bankruptcy case.
USA, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Maturity (finance), United States bankruptcy court
Yesterday, Lehman Brothers Holdings Inc. (LBHI) and the Official Committee of Unsecured Creditors of LBHI (the Committee) filed a complaint against JPMorgan Chase Bank, N.A. (JPMorgan) in the U.S. Bankruptcy Court for the Southern District of New York.
USA, New York, Banking, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Bankruptcy, Clearing (finance), Collateral (finance), Threatened species, Leverage (finance), Brokerage firm, JPMorgan Chase, Lehman Brothers, United States bankruptcy court