Creditor Priority Penalty Eased In One Aviation Del. Ch. 11
Law360 (November 17, 2020, 7:04 PM EST) -- Acknowledging fairness concerns in a "difficult" case, a Delaware bankruptcy judge on Tuesday vacated an earlier order declaring some claims of a Chapter 11 creditor to aircraft builder One Aviation Corp. subordinate to another's, just ahead of a third attempt at a company sale.
U.S. Bankruptcy Judge Christopher S. Sontchi's decision removed most "equitable subordination" restrictions favoring One Aviation creditor DW Partners LP over some of the debtor's obligations to Citiking International US LLC, moves that were approved in September as part of an emergency bid for additional debtor-in-possession loan funds.
One Aviation labeled plan sponsor and original DIP lender Citiking...
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