J-BAR REINFORCEMENT, INC. v. CREST HILL CAPITAL LLC

650404/16. 8395. 650294/17. 8394.

169 A.D.3d 499 (2019)

94 N.Y.S.3d 255

2019 NY Slip Op 01142

J-Bar Reinforcement, Inc., Respondent, v. Crest Hill Capital LLC, Appellant. J-Bar Reinforcement, Inc., Respondent, v. Mantis Funding, LLC, Appellant.

Appellate Division of the Supreme Court of New York, First Department.

Decided February 14, 2019.


Plaintiff held a promissory note executed by the respective defendants. The note was executed at a time when defendants had other creditors, and thus plaintiff executed a Subordination Agreement whereby plaintiff's right to payment was subordinated to the senior creditors. Specifically, the Subordination Agreement provided that plaintiff "will not now or hereafter directly or indirectly (i) ask, demand, sue for, take or receive payment of all or any part of the Subordinated...

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