It has become conventional wisdom that bankruptcy — even Chapter 11 — is now largely a process controlled by secured lenders.See, eg, Skeel DA Jr.: Creditors' Ball: The
Strategies for Lenders
It has become conventional wisdom that bankruptcy -- even Chapter 11 -- is now largely a process controlled by secured lenders. Whatever the merits of this view, the undersecured lender is still in an unenviable position as a result of the Supreme Court's holding in <i>Timbers</i> that undersecured creditors who are stayed from foreclosing on their collateral during bankruptcy are not entitled to accrue or collect interest on their claims during the bankruptcy case or otherwise be compensated for their loss.
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