In re Heritage Highgate Inc., No. 11-1889; Third Circuit; opinion by Rendell, U.S.C.J.; filed May 14, 2012. Before Judges Rendell, Fisher and Chagares. On appeal from the District of New Jersey. [Sat below: Judge Simandle.] DDS No. 42-8-6434 [27 pp.]
To develop a residential subdivision in Pennsylvania, debtors Heritage Highgate Inc. and Heritage-Twin Ponds II, L.P., entered into a series of construction loan agreements, first borrowing from a group of banks that retained a lien on substantially all of the debtors’ assets as collateral, then borrowing from Cornerstone Investors (CI), made up of several individuals and entities, who subordinated their secured claims to those of the bank lenders.
