Article

Note: Madison Investment Trust (Successor), the successor in interest to Key Bank National Association (Lender), claimed priority liens over the property of the Covenant at South Hills, Inc. (Debtor), a bankrupt continuing care retirement community. The basis of its claim included a Reimbursement Agreement by which Debtor agreed to reimburse Lender for drawings under two LCs issued in connection with bond financing in amounts of US$14,500,000 and US$1,030,000. The U.S. Bankruptcy Court for the Western District of Pennsylvania, Fitzgerald, J., ruled that Successor had no separate priority lien apart from that held by the Indenture Trustee, U.S. Bank National Association.

[JEB/anf]

COPYRIGHT OF THE INSTITUTE OF INTERNATIONAL BANKING LAW & PRACTICE

The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.