Two recent court decisions may indicate more uncertainty with respect to the enforceability of “make-whole” premiums in bankruptcy. Make-whole or prepayment premiums are common within loan agreements, bond issuances and other debt instruments.
In In re Cook, 2014 Bankr. LEXIS 67 (B.A.P. 8th Cir. Jan.
USA, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Eighth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
In a recent decision [1] arising from the In re Residential Capital LLC, et al.