Insider Debt: Is it Debt or is it Equity?
A New York Federal Bankruptcy Judge answered this very question in a published opinion: In re Live Primary, LLC, 626BR171; 2021 Bankr LEXIS 459 (Bankr SDNY, Mar. 1, 2021). Daniel Weiner and Howard Borin aggressively represented a group of senior secured noteholders seeking to recharacterize to equity a $6.4 million debt claim of one of Debtor’s owners. After a Zoom trial with hundreds of exhibits, Dan and Howie persuaded Judge Martin Glenn to recharacterize the entire claim, improving the likelihood of full payment to all unsecured creditors. This extraordinary relief is rarely granted and demonstrates the firm's creativity, tenacity and history of creating extraordinary results for its valued clients. A copy of the published decision can be obtained here.