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Cramdown Interest Rates in Chapter 11
In Till v. SCS Credit Corp., 541 U.S. 465 (2004), the U.S. Supreme Court applied a formula to determine the appropriate cramdown interest rate with respect to the treatment of secured claims in a Chapter 13 case ' holding that the appropriate interest rate is determined by taking a risk-free base rate, such as the prime rate or the Treasury rate, and adding a risk premium of between 1% and 3% to reflect the repayment risks unique to the particular debtor. However, Till left an unanswered question about how to determine an applicable cramdown interest rate for allowed secured claims in Chapter 11 cases.
Since Till, courts have relied on language contained in footnote 14 in Till to provide guidance on how such a rate should be determined in Chapter 11 cases. Footnote 14, in substance, states that while there is no readily apparent Chapter 13 cramdown interest rate because there is no free market of Chapter 13 cramdown lenders, the same may not be true in Chapter 11 because lenders advertise financing for Chapter 11 debtors-in-possession. This has opened the door to arguments about the use of market rates to determine cramdown interest rates in Chapter 11 cases. However, questions still remain over how and when to apply either a market interest rate or formula-based rate in Chapter 11 cases.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.