Nonrecourse Claimants Have a Claim in Bankruptcy

Associate Katherine Catanese and Senior Counsel Derek Wright co-authored an article for Law360 on December 11, 2013 titled “Nonrecourse Claimants Have a Claim in Bankruptcy.” The article discusses a matter that recently confirmed that Bankruptcy Code Section 1111(b)(a)(A) treats an otherwise nonrecourse loan as a recourse loan in bankruptcy, regardless of whether there is any equity in the property securing that loan, and the lender is entitled to claim in bankruptcy.