In my last post I discussed the Meridian Sunrise Village v. NB Distressed Debt Investment Fund Ltd. opinion handed down by the United States District Court for the Western District of Washington in March of this year. The prior blog post focused on the Court’s holding that distressed loan investors are not “financial institutions” and therefore, cannot exercise rights and remedies under a loan agreement as permitted assignees. The Court didn’t stop there, however. Within the opinion, the Court also signed off on the debtor’s gerrymandering of votes in respect of its plan of reorganization. Today’s blog post discusses this second significant ruling.As previously reported, Meridian Sunrise Village (“Meridian“) borrowed approximately $75 million from U.S. Bank for the construction of a shopping center. Shortly after closing, U.S. Bank sold off pieces of the loan to other institutional lenders, including Bank of America.Following a series of defaults under the loan agreement, Meridian filed for chapter 11 in early 2013. During the course of the bankruptcy case, Bank of America sold its piece of the loan (“Ratable Loan“) to NB Distressed Debt Fund Limited (“NB“), which subsequently assigned one half of its interest to two other distressed debt investors (together with NB, the “Funds“).Meridian, in an attempt… Read full this story
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The Meridian Sunrise Village Opinion Redux Re: Bankruptcy and Distressed Debt Investors have 308 words, post on www.natlawreview.com at July 8, 2014. This is cached page on Law Breaking News. If you want remove this page, please contact us.