Sovereign Balks At Terms Of Taylor Bean DIP Funding

Law360, New York (October 30, 2009, 1:02 PM EDT) -- Bankrupt Taylor Bean & Whitaker Mortgage Corp.’s attempt to line up $25 million in debtor-in-possession financing has rubbed Sovereign Bank the wrong way, prompting the prepetition lender to question the effects the arrangement will have on the bank’s liens and the standing of its claims.

On Thursday, Sovereign urged Judge Jerry Funk of the U.S. Bankruptcy Court for the Middle District of Florida to condition approval of the DIP financing on the protection of the bank’s rights in a real estate pool as collateral on its...
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