NY Bankruptcy Court Rules Funder’s MCAs Were Really Loans

A judge presiding over an action brought by the Chapter 7 Trustee of the Estate of Kossoff PLLC against an MCA funder, issued a 36-page analysis on Monday that reclassified 19 MCAs (for $10.8 million) the funder made between 2016 and 2020 as loans. The Trustee’s complaint argues that the MCAs the funder made to Kossoff PLLC were criminally usurious and should therefore be deemed void ab initio.

The full decision can be read here.