October 28, 2021: Default Interest Considerations in Bankruptcy (Webinar)


OCTOBER 28 @ 12:00 PM – 1:15 PM | REGISTER HERE

1.25 Hours MCLE; 1.25 Legal Specialization in Bankruptcy LawSpecial low price!

The panelists will discuss the timely and highly disputed issues relating to default interest in the bankruptcy context, including the following:

  • Background – default interest allowance and disallowance in the 9th Circuit, including analysis as to whether this precedent is still good law or subject to dispute (i.e., In re Entz-White Lumber & Supply, Inc., 850 F.2d 1338m 1988 U.S. App. LEXIS 8780; GE Capital Corp. v. Future Media Prods., 547 F.3d 956, 958, 2008 U.S. App. LEXIS 22367; Wells Fargo Bank, N.A. v. Beltway One Dev. Grp., LLC (In re Beltway One Dev. Grp., LLC), 547 B.R. 819 2016 Bankr. LEXIS 1080, and other 9th Circuit rulings);

  • California Law – how to reconcile “alternative performance” cases with penalty cases, including an analysis of Civil Code § 1671(b) and matured v. unmatured loans;

  • Loan Origination and Negotiations – Bargaining power and sophistication at loan origination and effect on default interest allowance;

  • Altadena Decisions – the effect of the District Court’s reversal in East West Bank v. Altadena Lincoln Crossing, LLC, 598 B.R. 633 (C.D. Cal. Mar. 6, 2019), including a legal analysis and practical aspects relating to this case;

  • Practical Application – the importance of handling default interest issues at the onset of Chapter 11 cases, including the effect on Plan confirmation and sub-chapter V matters;

  • Beyond Default Interest – relation of analysis to attorneys’ fees, prepayment premiums/penalties, and late charges.

Speakers: Hon. Neil Bason, Rob Goe and Gregory Salvato

Moderator: Joshua Scheer