11th Circuit Rules Business Debtor Owes Default Rate Interest
- August 31, 2015
- Thomas Adam
- Bankruptcy
This summer, the 11th Circuit, the court that provides precedent for Florida Bankruptcy cases, came down with an unfavorable ruling for bankruptcy debtors regarding default rate interest in a Chapter 11 bankruptcy case, in re: Sagamore Partners, Ltd. As with all bankruptcy cases, having an understanding of the background helps: Key Pre-Bankruptcy History The debtor, Sagamore Patners, Ltd (“Sagamore”), owns a namesake hotel in Miami. In 2006, Sagamore took out a secured loan for $31.5[...]