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Creditors Risk Equitable Adjustment of Claims if Overly Involved in Debtor’s Business Affairs

Staff October 3, 2015February 15, 2016 Bankruptcy, Business Law, Business Reorganizations, Creditors Rights

The court in In re Aida’s Paradise, LLC, 485 B.R. 806 (2013) has warned lenders not to become overly involved in a debtor’s business affairs, even if all of its actions are legally permissible.  The court cited the Eastern District…

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