First and Second Liens

One of the leading issues currently faced by bankruptcy practitioners can be found in the frequently recurring disputes between first and second lienholders ' an issue that was recently addressed in the context of a ' 363 sale. In <i>Contrarian Funds, LLC v. Westpoint Stevens, Inc.</i> (<i>In re Westpoint Stevens, Inc.</i>), 333 B.R. 30 (S.D.N.Y. 2005), the United States District Court for the Southern District of New York (the District Court) reversed a ' 363(b) sale order (Sale Order) of the bankruptcy court on the grounds that the Sale Order authorized an in-kind distribution of equities ' rather than cash ' to first lien holders outside the Chapter 11 plan confirmation process.

25 minute readApril 27, 2006 at 09:26 AM
By
ALM Staff
Law Journal Newsletters
First and Second Liens

One of the leading issues currently faced by bankruptcy practitioners can be found in the frequently recurring disputes between first and second lienholders ' an issue that was recently addressed

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