Tag Archives: subordination

Debt Recharacterization, Etc.: Standing, Standing and More Standing

Elswick Co., LLC v. Comm2013 CCRE12 Crossings Mall Road LLC (In re Tara Retail Group, LLC), 595 B.R. 215 (Bankr. N.D. W.Va. 2018) – An unsecured tenant creditor brought an adversary proceeding to recharacterize or equitably subordinate a $17 million claim … Continue reading

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Subrogation: A Mortgagee May Be Able to Obtain Priority for Future Advances, But Don’t Count on It

Trampush v. United FCS (In re Trampush), 552 B.R. 817 (Bankr. W.D. Wisc. 2016) – Chapter 13 debtors sought a determination of the priority of two mortgages. A successor to the first mortgagee argued that the entire balance owed to … Continue reading

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Intercreditor Agreements: Recognize That Second Lien Financings Are A Special Case Of Subordinated Lending

BOKF, N.A. v. JPMorgan Chase Bank, N.A. (In re MPM Silicones, LLC), 518 B.R. 740 (Bankr. S.D.N.Y. 2014) – Senior lienholders sued lenders holding junior liens on common collateral, arguing that the junior lienholders violated an intercreditor agreement.  The bankruptcy court … Continue reading

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Equitable Subordination: Construction Lenders Beware

Atlantic Builders Group, Inc. v. Old Line Bank (In re Prince Frederick Inv., LLC), 516 B.R. 778 (Bankr. D. Md. 2014) – A construction contractor contended that the claim of the debtor’s construction lender should be equitably subordinated based on the … Continue reading

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Mortgage Modifications: Senior Loans May Become Not So Senior

Sperry Assoc. Fed. Credit Union v. US Bank Nat’l Ass’n (In re White), 514 B.R. 365 (Bankr. E.D.N.Y. 2014) – A junior mortgagee sought to subordinate the senior mortgage loan based on an argument that modification of the senior loan … Continue reading

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Mortgage-Backed Securities: “It Is The Rare Ordinary Human Being Who Understands Them”

In re Lehman Bros. Holdings Inc., 513 B.R. 624 (Bankr. S.D.N.Y. 2014) – A purchaser of residential mortgage-backed securities filed proofs of claim based on alleged misrepresentations by the debtors in offering materials distributed in connection with sale of the … Continue reading

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