Fancy drafting by ‘brilliant financiers and lawyers,’ the judge said, didn’t validate an uptier transaction when the ‘effect’ was to release collateral without a two-thirds vote.

Fifth Circuit didn’t permit plan proponents to structure a chapter 11 plan so that an appeal would be equitably moot.

The Fifth Circuit declines to adopt a securities industry guidebook for what’s a permissible financing.

Knowledge of a chapter 11 case is enough to bind a creditor to the terms of a plan, even if the creditor hasn’t filed a claim, the Fifth Circuit says.

There’s no circuit split on post-petition interest, because the Second Circuit agreed with the Third, Fifth and Ninth Circuits.

Sticking to her guns, Bankruptcy Judge Mary Walrath rules that the solvent-debtor exception was abrogated by the adoption of the Bankruptcy Code, but certifies a direct appeal to the Court of Appeals.

Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.

California judge disagrees with a Texas judge and rules that creditors of a solvent debtor are not entitled to the higher state judgment rate or the higher contract rate.

Creditors are entitled to ‘default interest’ when the debtor is solvent.

Bankruptcy Judge Glenn hints that the lenders and the debtor should mediate tough questions about the enforceability of a $150 million ‘sale’ of future credit card receivables.