What Happened?
One fundamental question in any restructuring relates to the treatment of funded debt obligations, like mortgages. When the cost of prepetition debt is higher than the prevailing market rates, a debtor may...more
One feature commonly seen in commercial lending transactions is a waiver of the borrower’s authority to file for bankruptcy without the consent of the lender. While such “blocking” provisions are generally upheld where the...more
3/31/2023
/ Bankruptcy Court ,
Chapter 11 ,
Chapter 7 ,
Chapter 7 Conversions ,
Commercial Bankruptcy ,
Commercial Loans ,
Consent ,
Debt-Equity ,
Lenders ,
Limited Liability Company (LLC) ,
LLC Agreements ,
Managing Members ,
Members ,
Secured Debt ,
Waivers
When enacting the Bankruptcy Code, Congress sought to strike a balance amid the confluence of different — and often competing — interests held by debtors, secured creditors and various unsecured creditor constituencies...more