News & Analysis as of

Creditors PG&E

Nelson Mullins Riley & Scarborough LLP

Are Unsecured Creditors of a Solvent Debtor Entitled to Post-Petition Interest at the Contract Rate? Recent Circuit Court of...

Two recent decisions from circuit courts of appeal – the Fifth and Ninth – have addressed a question that does not arise often: in a solvent-debtor chapter 11 case, is the debtor required to pay post-petition interest...more

A&O Shearman

Ninth Circuit Rules that the Solvent Debtor Exception Is Alive and Well in PG&E

A&O Shearman on

The common law solvent debtor exception, in short, means that a solvent debtor must generally pay post-petition interest accruing during bankruptcy at the contractual or state law rates before collecting surplus value from...more

Morgan Lewis

‘Unimpairment’ Under Chapter 11: More Than Just a Non-Word

Morgan Lewis on

It begins with an awkward mouthful. Outside a bankruptcy brief, is “unimpairment” even a word? (No, per Merriam-Webster.) Inside Chapter 11, it’s much more: a trend. ...more

Patterson Belknap Webb & Tyler LLP

Big Progress in Big Cases: PG&E and Puerto Rico are Making Strides Towards Achieving Creditor Consensus

There has been considerable progress towards resolution in two of the largest bankruptcy cases pending in the United States: the Commonwealth of Puerto Rico and the California utility, Pacific Gas & Electric. Several...more

Alston & Bird

Bankruptcy Court Finds Federal Judgment Rate Applies to Postpetition Interest

Alston & Bird on

Our Financial Restructuring & Reorganization Group analyzes a federal bankruptcy court ruling that sides with PG&E over noteholders in a dispute worth more than $500 million in potential interest payments. ...more

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