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§ 1124(2)

Golden Seahorse LLC, In re

Ruling
Debtor had to pay default interest to the extent provided by its agreement and permitted bynon-bankruptcy law in order to reinstate its defaulted debt. (Bankr. S.D.N.Y.)
Issue(s)
Impairment of Claims or Interests; When Default Rights Are Not Impaired.

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Commercial opinion summary, case decided on July 31, 2023 , LexisNexis #0923-093

975 Walton Bronx LLC, In re

Ruling
Debtor could not cure and reinstate the lender's claim absent cure of the nonmonetary defaultdue to debtor’s intentional breach of the change of control covenant. (Bankr. E.D.N.Y.)
Issue(s)
Impairment of Claims or Interests; When Default Rights Are Not Impaired.

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Commercial opinion summary, case decided on October 06, 2022 , LexisNexis #1222-046

975 Walton Bronx LLC, In re

Ruling
Debtor's plan of reorganization was not confirmable to the extent that it provided forreinstatement of a loan accelerated by lender after the debtor concealed a change inownership. (Bankr. E.D.N.Y.)
Issue(s)
Impairment of Claims or Interests; When Default Rights Are Not Impaired.

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Commercial opinion summary, case decided on September 23, 2022 , LexisNexis #1122-092

Lewisberry Partners, LLC, In re

Ruling
There is no federal bankruptcy right to modify a creditor's contractual right to collect defaultinterest otherwise collectible under the parties' loan contract. (Bankr. E.D. Pa.)
Issue(s)
Impairment of Claims or Interests; When Default Rights Are Not Impaired.

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Commercial opinion summary, case decided on July 01, 2022 , LexisNexis #0822-070

In re Sagamore Partners LTD

Ruling
Lender that was not to be paid default rate of interest to which it was entitled could not be treated as unimpaired under plan.
Procedural posture

Secured lender of chapter 11 debtor filed an objection to the disclosure statement filed by the debtor in connection with its plan of reorganization.

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Commercial opinion summary, case decided on July 10, 2012 , LexisNexis #0812-062

In re Zamani

Ruling
Creditor not entitled to default rate of interest where not specified in original contract.
Procedural posture

The debtor proposed a plan of reorganization that would cure or pay off three promissory notes held by the secured creditor bank. Because the debt to the creditor was over- secured, it is entitled to recover interest on its claims under 11 U.S.C.S. § 1124(2). The parties disagreed, however, whether the bank was entitled to recover interest at default rate under its agreements with the debtor, or must be satisfied with interest at the basic rate.

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Consumer opinion summary, case decided on April 07, 2008 , LexisNexis #0808-022

In re Sweet

Ruling
Creditor entitled to default rate of interest and attorneys'fees but not late charges.
Procedural posture

Chapter 11 debtors challenged a proof of claim filed by a creditor, which sought an award of default interest, attorney's fees and costs, and late charges pursuant to 11 U.S.C. § 1124(2).

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opinion summary, case decided on May 21, 2007 , LexisNexis #0607-136