Introduction
Originally published in ABF Journal on May 20, 2015
Determining secured lender cramdown interest rates in Chapter 11 cases has been widely debated, and recent court rulings have proven to be inconclusive. Kaye Scholer Attorneys Madlyn Gleich Primoff and Holly Martin discuss the controversial issue, highlighting the ABI Commission’s recent recommendations that endorse a more favorable approach for secured lenders.
As we previously reported, on April 1, 2015, the Supreme Court heard oral argument inBullard v.
Harris v. Viegelahn, No. 14-400 (previously described in the December 15, 2014, Docket Report)
Since at least the Delaware Supreme Court’s 2007 landmark decision in N. Am. Catholic Educ. Programming Found., Inc. v. Gheewalla, 930 A.2d 92, 101 (Del.
Introduction
Rule 9019: Compromise and Arbitration
“I get knocked down / But I get up again / You’re never gonna keep me down.”
– Chumbawumba
It is already relatively settled that an insider who has personally guaranteed the debt of his or her company may face preference exposure to the extent the guaranteed debt is paid down during the one-year preference period applicable to insiders. Without doubt, such payments directly benefit the guarantor, whose obligation to the primary creditor is reduced dollar for dollar.