Firm Prevails in Dispute over Secured Claim – October 27, 2015

On October 27, 2015 Bankruptcy Judge Michael G. Williamson entered a fifteen-page summary judgment opinion ruling in favor of the debtor in the Kraz, LLC chapter 11 case.  The Court determined that the debtor did not file in bad faith, distinguishing Phoenix Piccadilly, and disallowed approximately $1.1 million in interest claims and $670,000 in attorneys’ fees sought by the lender. The Court noted that one other ground for objection seeking disallowance of an additional $410,000 in default interest would require an additional hearing.  The ruling quantifies the maximum amount of the secured claim and permits the Court to now consider confirmation of the debtor’s plan, which proposes payment of the allowed secured claim in full over time.  Steve Leslie and Mark Robens led the firm’s representation of the debtor.