HSBC Bank USA, National Ass'n v. Bank of New York Mellon Trust Co. (In Re Bank of New England Corp.)

STAHL, Circuit Judge.

HSBC Bank USA, N.A. appeals, for the second time, a district court judgment that affirmed a bankruptcy court’s authorization of a distribution of assets from the estate of Bank of New England Corporation (“BNEC”) to holders of BNEC junior debt. The parties agree that the holders of the senior debt are entitled to priority payment of their principal along with pre-petition interest — that is, interest that accrued up until the filing of BNEC’s bankruptcy petition — before the holders of the junior debt may receive a distribution. At issue is whether this senior priority…