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Webinar: Default Interest Considerations in Bankruptcy
October 28, 2021 @ 12:00 pm – 1:15 pm
This program offers 1.5 Legal Specialization in Bankruptcy Law and 1.25 participatory MCLE credits.
The panelists will discuss timely and highly disputed issues relating to default interest in the bankruptcy context, including a background of default interest allowance and disallowance in the 9thCircuit, how to reconcile “alternative performance” cases with penalty cases, an analysis of Civil Code § 1671(b), an analysis of the East West Bank v. Altadena Lincoln Crossing, LLC, 598 B.R. 633 (C.D. Cal. Mar. 6, 2019) decision, and a discussion on practical application of handling default interest issues in Chapter 11 cases.
CLA Members: $30
The panelists will discuss the timely and highly disputed issues relating to default interest in the bankruptcy context, including the following:
- Background – default interest allowance and disallowance in the 9th Circuit, including analysis as to whether this precedent is still good law or subject to dispute (i.e., In re Entz-White Lumber & Supply, Inc., 850 F.2d 1338m 1988 U.S. App. LEXIS 8780; GE Capital Corp. v. Future Media Prods., 547 F.3d 956, 958, 2008 U.S. App. LEXIS 22367; Wells Fargo Bank, N.A. v. Beltway One Dev. Grp., LLC (In re Beltway One Dev. Grp., LLC), 547 B.R. 819 2016 Bankr. LEXIS 1080, and other 9th Circuit rulings);
- California Law – how to reconcile “alternative performance” cases with penalty cases, including an analysis of Civil Code § 1671(b) and matured v. unmatured loans;
- Loan Origination and Negotiations – Bargaining power and sophistication at loan origination and effect on default interest allowance;
- Altadena Decisions – the effect of the District Court’s reversal in East West Bank v. Altadena Lincoln Crossing, LLC, 598 B.R. 633 (C.D. Cal. Mar. 6, 2019), including a legal analysis and practical aspects relating to this case;
- Practical Application – the importance of handling default interest issues at the onset of Chapter 11 cases, including the effect on Plan confirmation and sub-chapter V matters;
- Beyond Default Interest – relation of analysis to attorneys’ fees, prepayment premiums/penalties, and late charges.
Speakers: Hon. Neil Bason, Rob Goe and Gregory Salvato
Moderator: Joshua Scheer
Hon. Neil Bason
Hon. Neil W. Bason has served as a United Stated Bankruptcy Judge for the Central District of California Since 2011.
Judge Bason worked as an associate at Palmer and Dodger; Edwards & Angell (1989-92) and Hovis, Smith, Stewart, Lipscomb & Cross (1992-00). From 2000 to 2008, Judge Bason clerked for the Hon. Dennis Montali (U.S. Bankruptcy Court, Northern District of California, and Bankruptcy Appellate Panel of the Ninth Circuit). Judge Bason also acted as Special Counsel for Howard Rice Nemerovski Canady Falk & Rabkin, P.C. in San Francisco, California (2008-09) and Duane Morris, LLP (2009-11) before being appointed to the bench in 2011.
In private practice Judge Bason specialized in commercial bankruptcy and insolvency, including a focus on secured creditor representation and substantial representation of trustees, receivers, debtors/borrowers, guarantors, unsecured creditors, prospective purchasers of assets out of bankruptcy, parties to executory contracts and unexpired leases, equity holders, and other parties in interest.
Judge Bason received his B.A. from Johns Hopkins University and his J.D. from Boston University School of Law, Magna Cum Laude.
Robert P. Goe is s a federally appointed Chapter 11 Sub V Bankruptcy Trustee. He also represents creditors and debtors in Chapter 7 and 11 proceedings, Chapter 7 and 11 Trustees, secured creditors and official committees of unsecured creditors. He also represents parties in workouts and related matters, and buyers of distressed assets.
Mr. Goe has focused his practice nearly exclusively in bankruptcy and creditors’ rights since passing the California Bar exam on his first attempt in 1988. He started as the Clerk for the Honorable David N. Naugle, U.S. Bankruptcy Judge, Central District of California, from 1988 – 1989. Prior to that, he externed for the Honorable Cynthia Holcomb Hall, U.S. Court of Appeals, Ninth Circuit, in 1988.
Mr. Goe is a member of the Orange County Bar Association (Member, Commercial Law and Bankruptcy Section); State Bar of California; Orange County Bankruptcy Forum; Inland Empire Bankruptcy Forum; American Bankruptcy Institute. He was the past Chairman (2018), Treasurer (2017) and Secretary (2016) of the Orange County Bar Association Commercial Law and Bankruptcy Section. Mr. Goe was also the past President (2016), Program Chairman (2015), Secretary (2014), and Treasurer (2013) of the Inland Empire Bankruptcy Forum, and is the current Membership chair of that organization.
Gregory M. Salvato specializes in business litigation in State and Federal Courts, bankruptcy and related matters. Mr. Salvato has litigated matters in the Bankruptcy or Federal District courts in Arizona, Colorado, Connecticut, Delaware, Florida, Nevada, New Jersey, New York, Ohio, Virginia, and Texas, and before the California Courts of Appeal, Bankruptcy Appellate Panel and Ninth Circuit Court of Appeals.
Mr. Salvato has been a Bankruptcy Specialist since 2002, certified by the California Board of Legal Specialization, State Bar of California. Mr. Salvato is the former chair of the Bankruptcy Law Advisory Commission of the State Bar of California. Mr. Salvato is a member of the Los Angeles County Bar Association’s sections on Commercial Law and Bankruptcy, Litigation, and Remedies (Chair, 2002-2003), the Italian American Lawyers Association (Board of Trustees), Association of Business Trial Lawyers, Los Angeles Bankruptcy Forum, Orange County Bankruptcy Forum, California Bankruptcy Forum, Financial Lawyers Conference, American Bankruptcy Institute, and American Bar Association.