Driving While Unimpaired (Part 2)

Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 2)

The allowance of postpetition interest in solvent debtor chapter 11 cases has become an important issue in recent years for corporate issuers, bondholders and other creditors. 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 rate of interest payable to unsecured creditors who are entitled under the Bankruptcy Code to full payment of their claims under a plan of reorganization. (Judge Walrath also addressed other topics in her decision pertaining to the allowance of make-whole premiums, which were examined in part 1.)