9th Circ. Says Debtors Owe Full Value On $50M Note

Law360 (January 10, 2020, 2:21 PM EST) -- The Ninth Circuit has found the Arizona bankruptcy court was right to rule that a real estate developer owes the $50 million-plus face value of a promissory note written to a litigation financing firm, saying early payment discounts didn’t make full payment with interest a penalty.

In an unpublished opinion filed Thursday, the panel found that while Phoenix-based Epicenter Partners LLC could have received a substantial discount for repaying the note before its maturity date, payment of its full value after the maturity date is not a penalty and the post-maturity 35% interest rate is enforceable.

In 2009, Ganymede Investments Ltd....

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