Workouts and Bankruptcy in Public Finance

  • Overview
  • Attorneys
  • News
  • Publications
January 8, 2014

In a decision recently entered by the United States Bankruptcy Court for the Southern District of California, the bankruptcy court held that pre-petition payments made to a fully secured senior lender which benefitted a partially secured junior lender could constitute preferential transfers to the junior lender. The court further ruled that such preferential transfers could be recoverable from either the junior lender or the fully secured senior lender.

Client Alert