Category Archives: Financing

Post-Petition Interest: Default Rate Is Not a Slam Dunk

In re Residential Capital, LLC, 508 B.R. 851 (Bankr. S.D.N.Y. 2014) – An oversecured creditor claimed post-petition interest at the contract default rate. The debtors and the post-confirmation liquidating trust objected, arguing that the lender should be limited to the … Continue reading

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Strong Arm Powers: For Want of An “S” the Mortgage Was Lost

Hardesty v. Mortgage Electronic Registration Systems, Inc. (In re Boothe), 510 B.R. 154 (Bankr. S.D. Ohio 2013) – A chapter 7 trustee successfully sought to avoid a mortgage using his “strong arm” powers on the basis that the mortgage was not … Continue reading

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Title Insurance: May Not Solve As Many Problems As You Might Expect

Amzak Capital Mgmt. v. Stewart Title of Louisiana (In re West Feliciana Acquisition, L.L.C.), 744 F.3d 352 (5th Cir 2014) – In the context of the bankruptcy proceeding to determine the validity of a mortgage, the mortgagee filed a third-party … Continue reading

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Tortious Interference Claims: Something To Keep In Mind

Highland Capital Mgmt. L.P. v. UBS Securities, LLC (In re Lyondell Chemical Co.), 505 B.R. 409 (S.D.N.Y. 2014) – A hedge fund sued an investment bank for tortious interference based on its exclusion from participation in exit financing for a … Continue reading

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Foreclosure Sale: In a Race With a Bankruptcy Filing, Who Wins?

RBS, Inc. v. Bell (In re Bell), 507 B.R. 898 (S.D. W.Va. 2014) – The purchaser at a foreclosure sale sought relief from the automatic stay to complete the sale. The bankruptcy court denied the request on the basis that … Continue reading

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Missing Mortgage Details: At the End of the Day These Mortgages Survived

In re Crane, 742 F.3d 702 (7th Cir. 2013) – Chapter 7 trustees sought to avoid mortgages in two separate cases using their strong-arm powers. They argued that failure to include the loan maturity date and interest rate in the … Continue reading

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