Public Companies and Claims Trading

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Could a Public/Private Partnership Resolve New York MTA’s COVID-Driven Financial Distress?

Aug 2021

Bankruptcy Code

109

Topic Tags

Corporate Governance

Business Reorganization

Covid19

Detroit

Finance and Banking

Govt. Claims/Sovereign Immunity

Municipal Bankruptcy

Public Companies and Claims Trading

Courts Are Split on the Interest Rate for Unsecured Creditors of a Solvent Debtor

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.

Court :

9th Circuit

California

California Southern District

Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums

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

Court :

5th Circuit

Texas

Texas Southern District

Sanctions of $150,000 Upheld Against Nationwide Consumer Firm

When $50,000 in sanctions were not enough to coerce compliance with the Code and Rules, the Eleventh Circuit upheld $150,000 in sanctions for a second violation.

Court :

11th Circuit