Interest

Fifth Circuit Opinion on Solvent Debtor Illustrates Tension Between Text and Tradition

10/16/22

Bankruptcy opinions tend to rely on two major tools for interpreting the Bankruptcy Code: the statutory text and pre-Bankruptcy Code practice. These two methods came into conflict in the Fifth Circuit's recent opinion in Ultra Petroleum Corp. v. Ad Hoc Committee (In re Ultra Petroleum), No. 21-20008 (5th Cir.

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Post-petition Interest Excluded from Unsecured Indenture Creditor’s Claim

12/07/15

The U.S. Bankruptcy Court for the District of Delaware held in a recent opinion that post-petition interest should be excluded from an unsecured creditor’s claim, as otherwise it would violate the plain meaning of Section 502(b)(2).  In the case of In re Energy Future Holdings Corp., et al., Case No. 14-10979 (CSS) (Bankr. D. Del. Oct.

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Postjudgment Interest Due on Prejudgment Interest

09/26/13

Quality Engineered Installation, Inc. v. Higley S., Inc., 670 So.2d 929 (Fla. 1996) resolved a conflict among the Florida District Courts of Appeal and held that an award of prejudgment interest merges into and becomes part of a single total sum adjudged to be due and owing and as such the amount awarded for prejudgment interest, like all other components of the judgment, automatically bears interest as provided by section 55.03, Florida Statutes. The Florida Third District Court of Appeals, in Westport Recovery Corp. vs. Batista, 32 Fla.L.Weekly D2173 (Fla. 3rd.

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