Pryor Cashman Partner Joseph Shifer, a member of the firm's Bankruptcy, Reorganization + Creditors' Rights Practice, was featured in Bloomberg's coverage of Manhattan Country School's ongoing financial crisis following its Chapter 11 bankruptcy filing.
In the article, titled "NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy," Joe commented on the court's decision to reject an $8 million emergency loan that would have prioritized new financing over existing secured debt. The ruling came as the school sought immediate funds to cover payroll and remain operational through the academic year.
Speaking to the predictability of the decision, Joe noted the court's obligation to protect secured creditors:
"It's not surprising that a judge would be reticent to approve such a loan without convincing evidence."
His remarks reflect the legal considerations courts weigh when reviewing proposals in bankruptcy proceedings, particularly when they challenge the priority of longstanding creditor claims.
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