STOCKTON BANKRUPTCY NEWS
NORTHERN CALIFORNIA BANKRUPTCY NEWS
News and Events
Fraud sweep nets charges against 13 in California Bankruptcy
A federal grand jury in Santa Ana, Calif., indicted 10 defendants on bankruptcy fraud charges, according to U.S.
Attorney Debra W. Yang. The indictments were handed down on March 12 in the following matters:
Mark Steven Manderson and his wife, Leslee Jean Conner, of Newport Beach, were charged with concealing substantial
assets and making false statements in connection with their bankruptcy case. After the bankruptcy trustee assigned
to their case learned of the assets, the Mandersons made false statements to make it appear that there was no equity
in the properties.
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Supreme Court Resolves Issue of Cramdown Interest Rate to be
Applied in Chapter 13 Cases
By Kathryn L. Turner
The United States Supreme Court in Till v. SCS Credit Corporation in a plurality opinion has held the appropriate
method to be used to determine the cramdown rate of interest applicable to secured claims in chapter 13 cases is the
“prime-plus” or “formula rate.” The decision resolves a split in the circuits but fails to produce a majority opinion
directing exactly how the interest rate should be set. The four-person dissent held they would have adopted the contract
rate as the presumptive rate of interest. The decision has potential implications for creditors who lend money prepetition
to chapter 11 debtors as the same cramdown provision found in chapter 13 cases applies in chapter 11 cases. Lenders
therefore need to be forewarned that in the event they lend money to a creditor who subsequently files for chapter 11
protection, they may not receive the negotiated prepetition contract interest rate in a chapter 11 plan.
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