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Debt Re-Characterization

Katten Muchin Rosenman LLP

Ninth Circuit Holds That Debt Can Be Recharacterized as Equity

The US Court of Appeals for the Ninth Circuit recently resolved a split within the circuit when it held that a bankruptcy court has the power to recharacterize debt as equity. In In re Fitness Holdings International, Inc.,...more

Allen Matkins

Lenders Beware: Debt Can Now Be Recharacterized as Equity in the Ninth Circuit

Allen Matkins on

For the last 27 years, bankruptcy courts in the Ninth Circuit consistently held that debt could not be recharacterized as equity unless the movant proved inequitable conduct by the debt holder. On April 30, 2013, the Ninth...more

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