As long as the rate is legal under state law, considerations of equity will not allow a court to disallow default interest to an oversecured creditor under Section 506(b).
Eighth Circuit was compelled to overrule its own precedent that permitted the bankruptcy court to bar a debtor from amending schedules based on bad faith.
Appeals court laudably provides guidance for lower courts by ruling on the merits of a chapter 11 plan and not dismissing an appeal for being equitably moot.
