Tag Archives: subordination

Post-Petition Interest and Subordination: The Rule of Explicitness Lives (and Drafting Matters)

Silver Point Finance, LLC v. Deutsche Bank Trust Company Americas (In re K-V Discovery Solutions, Inc.), 496 B.R. 330 (Bankr. S.D.N.Y. 2013) – Based on a subordination agreement, senior secured noteholders contended that they were entitled to receive payment of post-petition … Continue reading

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Equitable and Mandatory Subordination: The Disappearing Claim

NTP Marble, Inc. v. Papadopoulos (In re NTP Marble, Inc.), 491 B.R. 208 (Bankr. E.D. Pa. 2013) – Prior to bankruptcy, a claimant obtained a $4 million judgment, which supposedly represented one-third of the value of the debtor’s business.  The debtor filed … Continue reading

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Equitable Subordination: Lenders Beware – It Is Not Enough That Actions Are Permitted Under the Loan Documents

In re Aida’s Paradise, LLC, 45 B.R. 806 (Bankr. M.D. Fla. 2013) – A chapter 11 debtor sought to equitably subordinate a lender’s unsecured deficiency claim based on actions that it claimed interfered with operation of its property.  The lender responded … Continue reading

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Property Interests / Subordination: Plan Ahead, Or You May Be Stuck Behind

Scotiabank De Puerto Rico v. Brito (In re Plaza Resort at Palmas), 469 B.R. 398 (B.A.P. 1st Cir. 2012) – In Plaza Resort at Palmas the timeshare owners asserted claims as secured creditors with liens on the resort that were senior … Continue reading

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