Ninth Circuit Allows GE Unit To Seek Default Interest

Law360, New York (July 3, 2008, 12:00 AM EDT) -- A federal appeals court has found that a bankruptcy court applied the wrong rule when it concluded that a bankrupt disk replication firm did not have to pay default interest and attorneys’ fees to a General Electric Co. finance unit.

The U.S. Court of Appeals for the Ninth Circuit reversed the bankruptcy court’s denial of GE Capital Corp.’s bid for interest and fees in Future Media Productions Inc.’s Chapter 11 case.

It remanded the case, ordering the bankruptcy judge to first apply a rule adopted by...
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