Ultra Petroleum Bankruptcy Court Again Allows Make-Whole Premiums, Postpetition Default Interest—At Least For Solvent Debtors
By EsqSocial Corporation 29/10/20
In a much-anticipated decision issued on October 26, the Bankruptcy Court for the Southern District of Texas awarded make-whole premiums and post-petition interest (i.e., interest accruing after the bankruptcy filing) to certain noteholders in the Ultra Petroleum bankruptcy case. Specifically, the court concluded: (1) make-whole premiums do not constitute the economic equivalent of unmatured interest and are thus not disallowed claims under the Bankruptcy Code; and (2) pursuant to the...
By: King & Spalding