Debtor-Owner Allowed to Modify Mortgage in Bankruptcy Even if Debtor Is Not Obligor Under the Mortgage Loan

Finance and restructuring partner Andrew Kassner and counsel Joseph Argentina co-authored an article for The Legal Intelligencer titled, “Debtor-Owner Allowed to Modify Mortgage in Bankruptcy Even if Debtor Is Not Obligor Under the Mortgage Loan.”

In the article, the authors discuss the recent decision in In re Taing, the U.S. Bankruptcy Court for the District of Massachusetts held that a mortgagee holds a claim that could be modified by a Chapter 11 plan even if the debtor was not indebted under the mortgage, but limited the ability to “cram down” the plan terms against the lender to the extent it modified the lender’s rights against the nondebtor obligor.

The full article is available to The Legal Intelligencer subscribers.