First Circuit Allows Subordinated Creditors in the Bank of New England Bankruptcy to be Paid Before Senior Creditors Receive Postpetition Interest | Practical Law

First Circuit Allows Subordinated Creditors in the Bank of New England Bankruptcy to be Paid Before Senior Creditors Receive Postpetition Interest | Practical Law

An update on the US Court of Appeals for the First Circuit's decision in the bankruptcy proceeding of Bank of New England Corporation affirming the district court's decision that subordinated creditors could be paid before senior creditors received postpetition interest. This is because it was not the intent of the parties to subordinate the junior debt to postpetition interest.

First Circuit Allows Subordinated Creditors in the Bank of New England Bankruptcy to be Paid Before Senior Creditors Receive Postpetition Interest

by PLC Finance
Published on 18 Jul 2011 • USA (National/Federal)
An update on the US Court of Appeals for the First Circuit's decision in the bankruptcy proceeding of Bank of New England Corporation affirming the district court's decision that subordinated creditors could be paid before senior creditors received postpetition interest. This is because it was not the intent of the parties to subordinate the junior debt to postpetition interest.