Secured Creditors Must Be Diligent to Protect Bankruptcy Post-Petition Interest and Costs by David A. Wender and Thomas P. Clinkscales (PDF)
A district court has affirmed a bankruptcy court ruling that a secured creditor that was oversecured on the date the debtor filed for bankruptcy was not entitled to a superpriority administrative expense claim under 11 U.S.C. § 507(b) for post-petition interest, costs, or fees. The authors of this article discuss the decision and its implications.
David A. Wender is a partner in Alston & Bird LLP’s Bankruptcy & Financial Restructuring Group and represents clients in complex bankruptcy cases, out-of court workouts, debt restructurings, asset dispositions, and claims reconciliation procedures. He also represents purchasers, sellers, and other parties in bankruptcy Section 363 sales; debtors in possession; secured and unsecured creditors; creditor’s committees; and financial institutions, officers, directors, and other entities in complex litigation engagements in state and federal courts throughout the United States. Prior to joining Alston & Bird, Mr. Wender served as law clerk to the Honorable Mary F. Walrath, chief U.S. bankruptcy judge for the District of Delaware. He received his J.D. from the Emory University School of Law and his B.S. in Business Administration from Washington University in St. Louis. He may be reached at email@example.com.
Thomas P. Clinkscales is an associate in Alston & Bird LLP’s Bankruptcy & Financial Restructuring Group. His practice focuses on the representation of debtors, creditors, and fiduciaries in cases under Chapter 11 of the Bankruptcy Code, and he also advises clients regarding out-of-court workouts and insolvency, bankruptcy-related, and commercial litigation matters. Mr. Clinkscales received his J.D., magna cum laude, from the University of South Carolina, where he was elected to the Order of the Coif and served as technology editor for the South Carolina Law Review, and his B.A. in English Literature from Furman University. He may be reached at firstname.lastname@example.org.
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