In a recent case that sent shockwaves through the lending community, the United States Bankruptcy Court for the Southern District of Florida issued a 182-page decision in Official Committee of Unsecured Creditors of TOUSA, Inc. v. Citicorp N. Am., Inc., setting aside obligations incurred and liens granted by subsidiaries of TOUSA, Inc. under certain loan agreements and guarantees and invalidating "savings clauses" that would otherwise protect the lenders.
Click here to view full memo, The TOUSA Decision: Death of the Savings Clause?