Document Type
Article
Publication Date
2006
ISSN
0886-8204
Publisher
Aspen Publishers
Language
en-US
Abstract
To emerge successfully from bankruptcy, a debtor must cross many hurdles. The debtor must negotiate with various creditor constituencies, propose a confirmable plan of reorganization and, perhaps most important, secure stable exit financing. Under the doctrine of equitable mootness, lenders can often take comfort that an appeal seeking to overturn an essential element of a substantially consummated plan will likely be dismissed. The case law does recognize an exception to the equitable mootness doctrine. In instances when appeals involve a discrete issue, the adjudication of which can be resolved without the entire plan being toppled, courts have been more willing to reach the merits of the claim. To be sure, a lender who provides exit financing as part of a complex reorganization can take some comfort from the equitable mootness case law, However, as American HomePatient shows, appellate courts have lots of discretion in determining whether an appeal is equitably moot.
Recommended Citation
Steven B. Levine & Gopal K. Balachandran,
Lending to the Emerging Debtor in the Face of an Appeal
,
21
Commercial Lending Review
35
(2006).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/3722
