Driving While Unimpaired (Part 1)

Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest

The treatment of make-whole premiums in solvent debtor chapter 11 cases has become an important issue in recent years for corporate issuers and bondholders. This podcast will examine a recent decision in the Hertz case by Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware on the allowance of such claims. (Judge Walrath also addressed other topics in her decision pertaining to the treatment of unimpaired creditors and postpetition interest, which is covered in part 2 .)