In this episode of "Lowenstein Bankruptcy Lowdown," partners Daniel B. Besikof and Gianfranco Finizio discuss “make-wholes:” provisions in an indenture or a credit agreement that compensate lenders for the time they will not earn interest as a result of an early repayment. Besikof and Finizio observe that the recent Third Circuit decision in the Hertz bankruptcy case, which found that make-wholes are in fact unmatured interest, may make it more difficult for noteholders to establish make-whole claims outside of solvent debtor cases, and may also result in more traditional insolvent debtors who are considering make-whole claims to pursue friendlier venues in the Third Circuit.

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