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Bankruptcy Blog

We provide insight and analysis on complex issues affecting distressed businesses or funds throughout the United States and abroad. Our Bankruptcy team is available to speak on various bankruptcy issues and claims. Contact us to learn more.

Bankruptcy Blog
April 25, 2022

Say what you mean; Mean what you say

Toys R Us filed for Chapter 11 protection in September 2017 with more than $5 billion in funded debt, arising mostly out of financing owners received to fund taking the company private.

Ultimately, under a confirmed Chapter 11 plan, which incorporated a settlement among interested parties, Toys R Us gave a near total release of all avoidance actions to pre- and post-petition creditors.

Bankruptcy Blog
August 24, 2021

Mortgage Attorneys Beware! A Bankruptcy Court May Enforce a Lower Interest Rate on a Mortgage Adopted by a Judgement of Foreclosure.

Specifically, where a mortgage creditor did not assert the default rate provided in an action taken to judgment on foreclosure, the bankruptcy court enforced the mortgage interest rate from a state court foreclosure order and determined the total debt to creditor based on the contract rate of 3.25% per annum “through the date to which such interest [was] computed,” versus the higher 18% default rate to which the creditor was contractually entitled had it properly asserted its claim.

Bankruptcy Blog
August 23, 2021

Are Critical Vendor Payments Protected from Recovery by a Chapter 7 Trustee? Maybe Not.

To recover a claim under section 547, a Chapter 7 trustee must prove a transfer was made to or for the benefit of a creditor; on account of an antecedent debt; while the debtor was insolvent; within 90 days before the filing of the bankruptcy petition (or between 90 days and one year for transfers to insiders of the debtor; and the creditor would receive more than if the case were a chapter 7 liquidation.