Robins Kaplan LLP (JD Supra Puerto Rico)

Expanding a split among circuit courts, the First Circuit recently set precedent promoting the unconditional right of creditors’ committees to participate in all aspects of bankruptcy cases. Reversing a lower court, in In Re: The Financial Oversight and Management Board for Puerto Rico, the First Circuit held that 11 U.S.C. 1109 (b) gives creditors’ committees an unconditional right to intervene

Can a bankruptcy court apply its equitable powers to adjust the default rate for post-petition interest owed to over-secured creditors? The Bankruptcy Court for the District of Puerto Rico recently held that the Bankruptcy Code allows for a “balancing of the equities” in determining whether to apply a contractual default rate or a contractual non-default rate for interest accruing after the...