1st Circ. Urged Not To Reinstate Developer's Ch. 11 Plan

Law360, New York (August 1, 2013, 7:54 PM EDT) -- The Mortgage Bankers Association on Wednesday urged the First Circuit not to reinstate a bankruptcy court order confirming the reorganization plan of the developers of the luxury W Boston Hotel, saying the precedent set by the order would unfairly increase risks for commercial mortgage lenders.

In an amicus brief, the association argued that a bankruptcy appeals panel had correctly vacated the order confirming the plan, which had “erroneously” allowed a substantive consolidation of the assets and liabilities of debtor SW Boston Hotel Venture LLC and related...
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