In Re Fencepost Productions: Prudential Standing Doctrine Blocks A Subordinated Creditor From Voting - Insolvency/Bankruptcy/Re-structuring
To print this article, all you need is to be registered or login on Mondaq.com. In a March 2021 decision in the jointly administered bankruptcy cases of Fencepost Productions, Inc. and certain of its affiliates, Judge Dale L. Somers of the Bankruptcy Court for the District of Kansas declined to enforce a voting restriction in subordination agreements between two of the debtors' creditors, but nonetheless found that the deeply subordinated creditors were barred from voting on the debtors' plan because they lacked prudential standing. 1 In declining to enforce the contra...
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