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Make-Whole Doctrine Lenders

Jones Day

Fifth Circuit Suggests Claims for Make-Whole Amounts Should Be Disallowed

Jones Day on

The Situation On January 17, 2019, the Fifth Circuit strongly suggested that claims for make-whole damages be characterized as "unmatured interest" and that claims for postpetition interest on unsecured debt be limited in...more

Cozen O'Connor

Third Circuit Rules in Favor of Noteholders on Make-Whole Provision in Debt Indenture

Cozen O'Connor on

Debt indentures often contain what is known as a “make-whole” provision, which requires the borrower, upon an early repayment of the debt, to make an additional payment to the lender to compensate the lender for its...more

Skadden, Arps, Slate, Meagher & Flom LLP

"Recent Rulings Underscore Importance of Careful Drafting of Make-Whole Payment Provisions"

Under long-established common law, loans must be paid only upon maturity, not before. This "perfect tender in time" rule is the default rule in a number of jurisdictions. Many indentures and credit agreements therefore either...more

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