Third Circuit Protects Lender Expectations Regarding Corporate Separateness in Lending to a Group of Affiliated Companies Authors: Andrew J. Love
The Third Circuit’s recent decision in In re Owens Corning offers comfort to lenders who have relied upon the separate existence and credit of affiliated parties in a financing. An important lesson from the court’s decision is that credit underwriting and loan terms should evidence the lenders’ reliance on the separateness of guarantors from the related borrowers.
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