Panel: Mortgage Borrower Has Prudential Standing As Debtor In Possession

Mealey's (December 14, 2022, 1:34 PM EST) -- NEW ORLEANS — A federal district court did not err in affirming a bankruptcy court’s denial of a debtor mortgage lender’s motion for a determination of secured claim under 11 U.S. Code Section 506(b) in a borrower’s Chapter 11 bankruptcy suit because the lender’s argument that the borrower lacks prudential standing ignores the borrower’s “fiduciary duties as a debtor in possession,” a Fifth Circuit U.S. Court of Appeals panel ruled in affirming....