Robert S. Hertzberg, a partner with Pepper Hamilton, was quoted in the September 18, 2019 Michigan Lawyers Weekly article, "Mediation Concludes Two-decade Case."
"We fought over the spread between the stated rate on the loans and the default rate for a period of 15 years," said plaintiffs' attorney Robert S. Hertzberg of Pepper Hamilton LLP in Detroit.
. . .
At that time, Dow paid the commercial creditors 100 percent of the principal and interest, but at an interest rate lower than the default rate. "That's where the dispute lies," Hertzberg said.
. . .
"The difference in interest rates was substantial because Dow was willing to pay and had paid at confirmation the amount of the loans in full plus the stated interest rates on the promissory notes. Our argument was that we are entitled to not the interest rate, but the default interest rate, because we alleged that Dow had defaulted by filing for bankruptcy and failing to pay the debts as they became due," Hertzberg said.
. . .
"Dow and my clients decided to try mediating one more time. Judge Shefferly did a phenomenal job and the parties were able to resolve their differences," Hertzberg said.
"There were different ways to calculate the default interest, whether it was simple interest, interest on interest or compounding interest, and there was also a ruling out of the Sixth Circuit on whether there were equitable factors we were entitled to default interest," Hertzberg said.
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