1st Circ. Sets Precedent On Post-Petition Interest
Law360, New York (April 18, 2014, 1:11 PM EDT) -- In an important decision for lenders, the First Circuit Court of Appeals recently decided In re SW Boston Hotel Venture LLC, holding that a bankruptcy court was right to give a lender a claim for post-petition interest beginning on the date of the sale of its collateral rather than the commencement date of the debtor’s bankruptcy case.
This case serves as a guide for lenders regarding their entitlement to post-bankruptcy interest, and importantly, it provides a precedent for lenders to obtain post-petition interest, even when they happen to be undersecured on the date of the filing of the petition.
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