Are adequate protection payments applied only to
Posted: Thu Dec 21, 2017 2:08 pm
This is the way I understand the Code, I haven't looked at 9th Cir cases...Where the collateral value is declining, the AP payments are intended to cover the amount of decline to maintain the status quo.
Where the over-secured claim doesn't have an adequate equity cushion, the AP payments are applied to the interest and then to principal.
Where the collateral value is less than the claim, the AP payments are applied to the secured portion rather than the unsecured portion. 506(b) only allows interest on an over-secured claim.
Peter M. Lively, J.D., M.B.A.
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On Thursday, December 21, 2017, 8:19:37 AM PST, Holly Roark hollyroark22@gmail.com [cdcbaa] wrote:
How are adequate protection payments applied in chapter 11 if not specifically stated in the stipulation? Do they pay down principal and interest or are they interest only payments?
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