For many years, the holder of a stock redemption claim against a company in bankruptcy faced almost certain demotion to the class of interest holders.
'My Claim Is What?'
For many years, the holder of a stock redemption claim against a company in bankruptcy faced almost certain demotion to the class of interest holders. No matter how long ago the stock redemption occurred, no matter the solvency of the company, and no matter how innocent the holder appeared, any claim for unpaid installments due under a stock redemption agreement was sent to the back of the line. In 1996, the Supreme Court issued a decision that rekindled hope for stock redemption claimants; recent case law, unfortunately, has failed to maintain a uniform front on this issue.
By
Jeffrey P. Bast And Kevin M. EckhardtThis premium content is locked for The Bankruptcy Strategist subscribers only
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