Southland Corp. v. Toronto-Dominion (In Re Southland Corp.)

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that, with respect to 11 U.S.C. § 1129(a)(3), Entz-White remains good law
• affirming use of default contract rate for period \between pre-bankruptcy default and the effective date of the reorganization plan\
• affirming allowance of default interest under section 506(b) based on trial court’s findings that other, junior creditors would remain “unscathed” by the bankruptcy and “[t]he 2% spread between default and pre- default interest rates is relatively small”
• discussing post- petition interest at a default rate under section 506(b) and holding that “a default interest rate is generally allowed, unless ‘the higher rate would produce an inequitable . . . result’” (alteration in original) (quoting In re Laymon, 958 F.2d at 75)
• “We find it especially significant-as did the bankruptcy court-that no junior creditors will be harmed if the Banks are awarded default interest.”
• “[A] default interest rate is generally allowed, unless the higher rate would produce an inequitable result.” (citations omitted)

Source: CourtListener parenthetical corpus (CC0).