PG&E Creditors' Challenge To Ch. 11 Interest Rate Ruling Fails

By Vince Sullivan (May 20, 2021, 6:55 PM EDT) -- A California federal judge affirmed the ruling of the bankruptcy judge who presided over the Chapter 11 case of utility provider PG&E Corp. on Thursday, finding he was correct in applying the federal interest rate for post-petition interest on unsecured claims.

In a decision from U.S. District Court Judge Haywood S. Gilliam Jr., the court said Ninth Circuit precedent supported the finding of the bankruptcy court that unsecured claims are entitled only to the federal judgment rate when calculating post-petition interest owed by a debtor, even if the debtor is solvent.

Judge Gilliam cited to the Ninth Circuit's In re: Cardelucci...

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