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Specializing in insolvency and complex commercial matters since 1974

Cramdown Plan Confirmed After Contested Confirmation, With Third Party Injunction - January 19, 2016

After a contested trial, Bankruptcy Judge Michael G. Williamson entered an order confirming a stand-alone plan of reorganization for the debtor in the Kraz, LLC chapter 11 case on January 19, 2016.  After taking evidence, the Court confirmed a plan over the objections of the principal secured creditor that included a matching injunction in favor of non-debtor guarantors.  The ruling followed an October 27, 2015 opinion denying the creditor’s claims for prepetition interest and attorneys’ fees.  In re Kraz, LLC, 539 B.R. 887 (Bankr. M.D. Fla. 2015).  At the confirmation hearing, the Court capped the creditor’s claim for purposes of confirmation and denied its motion to dismiss and motion for relief from stay.  The ruling also caps any potential default interest and permits the Court to consider damage claims against the creditor for asserting amounts due in excess of what was actually owed, objections to claims for default interest, as well as the debtor’s claims for prevailing party attorneys’ fees.   Stephen Leslie, Mark Robens, and Michael Hooi led the firm’s representation of the debtor.