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SDNY Bankruptcy Court Allows Unamortized Original Issue Discount As a Claim

The Bankruptcy Court for the Southern District of New York recently held that unamortized interest associated with original issue discount originating from a fair market value exchange constitutes an allowed bankruptcy claim.

34 minute read March 25, 2014 at 12:47 AM
By
Michael J. Sage And James O. Moore
SDNY Bankruptcy Court Allows Unamortized Original Issue Discount As a Claim

The Bankruptcy Court for the Southern District of New York (the bankruptcy court) recently held that unamortized interest associated with original issue discount (OID) originating from a fair market value exchange constitutes an allowed bankruptcy claim.

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