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In a March 2021 decision in the jointly administered bankruptcy
cases of Fencepost Productions, Inc. and certain of its affiliates,
Judge Dale L. Somers of the Bankruptcy Court for the District of
Kansas declined to enforce a voting restriction in subordination
agreements between two of the debtors creditors, but
nonetheless found that the deeply subordinated creditors were
barred from voting on the debtors plan because they lacked
prudential standing.
1 In declining to enforce the
contractual voting restriction, the decision defies a trend toward
enforcing subordination and intercreditor agreement terms - so long