In re Texas Grand Prairie: Fifth Circuit Affirms Below-market Cramdown Interest Rate Based on "Prime-plus" Formula | Practical Law
The US Court of Appeals for the Fifth Circuit in Wells Fargo Bank National Ass'n v. Texas Grand Praire Hotel Realty, LLC (In re Texas Grand Praire Hotel Realty, LLC) affirmed a bankruptcy court decision endorsing application of the "prime-plus" approach despite acknowledging that the resulting cramdown rate had little or no relation to market realities.