Member News - TAGLaw

Herrick Feinstein's (New York, New York, USA) bankruptcy group has defeated an attempt by the sponsor of a broken condo to cram down a bankruptcy plan on Herrick’s lender  client. Herrick’s client had made a one year bridge loan to the developer. Just prior to the maturity date, with the loan not in default, the sponsor filed bankruptcy. Herrick first obtained a ruling by the Bankruptcy Court that post-petition interest could accrue on the loan at the 24% default rate and then defeated a plan that attempted to extend the loan for five years at a rate that was less than half of the contract rate. Needless to say, Herrick has a very happy client!