Chapter 11 Deal Between New Orleans Archdiocese and Bond Trustee Is Rare
Bankruptcy, Restructuring and Creditors' Rights Partner Noel Boeke was interviewed for a Bond Buyer story about an unusual agreement between the Archdiocese of New Orleans and bond trustee TMI Trust Co. to pay bondholders post-petition interest as part of a Chapter 11 bankruptcy case. The archdiocese filed for reorganization in May, and the proceeding is ongoing. According to Mr. Boeke, what makes the settlement unusual is not only that unsecured bondholders are being paid post-petition interest but also that they are being paid while the case is pending.
"It is unusual for post-petition interest to be paid to unsecured creditors," he commented. "This was a well-presented motion by the debtor and TMI. To me, it was a win-win. I think this was good work by TMI, and good work by the debtor to solve a problem of the church."
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