Recent Hertz Delaware Bankruptcy Court Decision Continues Uncertainty Around Make-Whole Premium Claims
Date: 02/23/22
Over the past decade, there have been several court decisions on whether particular make-whole premiums should be allowed as part of a creditor’s claim in bankruptcy, such as Momentive, EFH, American Airlines, and Ultra Petroleum. Although these decisions and others set forth the legal standards to be applied and resolved the specific claims at issue, the decisions provide little guidance or clarity on the allowability of make-whole claims in future cases. In a recent decision in the Hertz bankruptcy cases, the United States Bankruptcy Court for the District of Delaware allowed certain make-whole claims, but disallowed others, continuing this uncertainty for future situations.
CGR Memo - Recent Hertz Delaware Bankruptcy Court Decision Continues Uncertainty Around Make-Whole Premium Claims (pdf | 240.93 KB )