News & Analysis as of

Liquidated Damages Chapter 11

Proskauer Rose LLP

Third Circuit Follows Fifth and Ninth Circuits on Treatment of Make-Whole Claims in Bankruptcy

Proskauer Rose LLP on

In a much-anticipated decision, the United States Court of Appeals for the Third Circuit recently held that unsecured noteholders’ claims against a debtor for certain “Applicable Premiums” were the “economic equivalent” to...more

Clark Hill PLC

The Learned Concierge - November 2023, Vol. 2

Clark Hill PLC on

The Learned Concierge Welcome to your monthly legal insights on the trends impacting the Retail, Hospitality, and Food & Beverage Industries....more

Seward & Kissel LLP

Arrested Development, Liquid Diet, Cardinal Sin, and Moot Court

Seward & Kissel LLP on

First Evergrande, now Sunac. Another big Chinese developer files for US bankruptcy protection | CNN Business - Sunac, a leading Chinese property developer, is the second giant Chinese developer in weeks, following...more

Jones Day

Fifth Circuit Rules on the "Solvent-Debtor Exception" and Make-Whole Premiums

Jones Day on

In Short - The Situation: Courts have disagreed over whether a make-whole premium triggered by a borrower's bankruptcy filing must be disallowed as unmatured interest. They have also disputed whether the "solvent-debtor...more

ArentFox Schiff

Amendment to Subchapter V of Chapter 11 Clarifies Affiliates' Eligibility for Streamlined Restructuring Process

ArentFox Schiff on

On June 21, 2022, President Biden signed the Bankruptcy Threshold Adjustment and Technical Corrections Act into law. As we reported here, the Bankruptcy Corrections Act revived the $7.5 million eligibility threshold for...more

ArentFox Schiff

Bankruptcy Legislation Update: Biden Signs Bill Preserving $7.5 Million Eligibility Threshold for Subchapter V

ArentFox Schiff on

The President signed legislation raising the eligible debt ceiling for Subchapter V of Chapter 11 to $7,500,000. Small businesses with up to $7,500,000 in noncontingent, liquidated debts are eligible for relief under...more

Jones Day

Texas Bankruptcy Court Allows Make-Whole Premium as Liquidated Damages and Requires Solvent Chapter 11 Debtor to Pay Postpetition...

Jones Day on

On October 26, 2020, the U.S. Bankruptcy Court for the Southern District of Texas issued a long-awaited ruling on whether natural gas exploration and production company Ultra Petroleum Corp. ("UPC") must pay a make-whole...more

Jones Day

Oversecured Creditor's Right to Contractual Default-Rate Interest Allowed Under State Law

Jones Day on

It is generally well understood that an "oversecured" creditor is entitled to interest and, to the extent provided for under a loan agreement, related fees and charges as part of its secured claim in a bankruptcy case....more

Moritt Hock & Hamroff LLP

Equipment Lessor's Damages Calculation Ruled Unenforceable

In a related update, we called attention to risks and pitfalls to lenders and lessors when seeking prepayment premiums and other charges upon the occurrence of an event of default: Lenders Beware: Acceleration May Defeat...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent Developments in the Enforceability of Make-Whole Premiums in the Second Circuit

In March 2019, Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York ruled that lenders using clear and unambiguous language in their loan agreements may be entitled to prepayment...more

Jones Day

Chapter 11 Plan Not Providing for Payment of Make-Whole Premium Impaired Noteholders

Jones Day on

In In re Ultra Petroleum Corp., 2017 BL 335015 (Bankr. S.D. Tex. Sept. 21, 2017), the U.S. Bankruptcy Court for the Southern District of Texas ruled that certain private-placement noteholders were entitled to receive a...more

Jones Day

Bankruptcy Court Rules "Make-Whole" Provision Creates Enforceable Liquidated Damages

Jones Day on

The Situation: After a ruling in In re Ultra Petroleum Corp. by the U.S. Bankruptcy Court for the Southern District of Texas, certain private-placement noteholders are entitled to a "make-whole" premium in excess of $200...more

12 Results
 / 
View per page
Page: of 1

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide