Bankruptcy Court Denies 33 Mako LLC's Motion to Reduce Post-Petition Interest Claim

The U.S. Bankruptcy Court for the Southern District of New York ruled against the debtor's request to disallow or reduce a creditor's claim for post-petition default interest.

Apr. 6, 2026 at 12:00am

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The U.S. Bankruptcy Court for the Southern District of New York has issued a bench decision denying 33 Mako LLC's motion to disallow or reduce a creditor's claim for post-petition default interest. The court found that the creditor's claim for post-petition interest was properly allowed under the Bankruptcy Code.

Why it matters

This decision upholds the creditor's right to collect post-petition default interest, which can have significant financial implications for the debtor company. It also provides guidance on the standards bankruptcy courts will apply when evaluating motions to disallow or reduce post-petition interest claims.

The details

In the Chapter 11 bankruptcy case of 33 Mako LLC, the debtor company filed a motion seeking to disallow or reduce a creditor's claim for post-petition default interest. The court, however, ruled against the debtor, finding that the creditor's claim for post-petition interest was properly allowed under the Bankruptcy Code.

  • The bench decision was signed on April 4, 2026.

The players

33 Mako, LLC

The debtor company that filed for Chapter 11 bankruptcy.

United States Bankruptcy Court for the Southern District of New York

The court that issued the bench decision denying 33 Mako LLC's motion to disallow or reduce the creditor's claim for post-petition default interest.

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The takeaway

This decision reinforces the ability of creditors to collect post-petition default interest in bankruptcy cases, even over the objections of the debtor. It highlights the importance for debtors to carefully consider the potential consequences of post-petition interest claims when filing for bankruptcy.