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In the Spotlight: Bankruptcy Stays and Guarantors

By Adam Leitman Bailey and Dov Treiman
March 27, 2013

In January of this year, New York's intermediate appellate court in Brooklyn decided Empire Erectors and Electrical Company, Inc. v. Unlimited Locations LLC, 8920, 310289/10, App.Div., 1st Dept., Jan. 3, 2013, bringing to New York law the principle that unless guarantors file for their own independent bankruptcy protection, the protections that bankruptcy brings to a primary debtor do not automatically protect the guarantors.

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