State v. McKiearnan

How courts have described this case

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

• deciding that if repayment depended solely on the success of the borrower’s business, the transaction has the appearance of an equity contribution
• explaining that “[bjecause both recharacterization and equitable subordination are supported by the Bankruptcy Code and serve different purposes, we join those courts that have concluded that a bankruptcy court has the power to recharacterize a claim from debt to equity” and collecting cases
• deferral of interest payments on its own does not prove the parties intended the debt transaction to be equity
• “Recharacterization is appropriate where the circumstances show that a debt transaction was actually an equity contribution ab initio ”
• “[I]f the expectation of repayment depends solely on the success of the borrower’s business, the transaction has the appearance of a capital contribution.”

Source: CourtListener parenthetical corpus (CC0).