ARTICLE
6 June 2025

Shifer Comments On Bankruptcy Judge's Rejection Of Emergency Loan

PC
Pryor Cashman LLP

Contributor

A premier, midsized law firm headquartered in New York City, Pryor Cashman boasts nearly 180 attorneys and offices in both Los Angeles and Miami. From every office, we are known for getting the job done right, and doing it with integrity, efficiency and élan.
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...
United States Insolvency/Bankruptcy/Re-Structuring

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.

Read the full article using the link below.

Resources

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More