The court affirmed the district court's judgment that Second-Lien Notes are Senior Indebtedness. The Senior-Lien Notes holders received replacement notes with deferred cash payments, which must reflect the full value of the secured claims with an appropriate interest rate. The bankruptcy court applied a 'formula' rate, which was below market, based on the Till v. SCS Credit Corp. case. The Senior-Lien Notes holders argued for a market rate, but the court rejected this, adhering to the 'formula' method.
documents/vol00010-efta01358965-pdf.pdf
{"key_people":["Rake v. Wade","Till v. SCS Credit Corp."],"document_date":"2017","document_type":"legal","document_subtype":"court opinion","key_organizations":["MPM"],"reference_numbers":["11 U.S.C. § 1129(b)(2)(A)(i)(II)","508 U.S. 464","541 U.S. 465","531 B.R. at 334-35"]}