On July 24, 2013, Judge Steven W. Rhodes of the Bankruptcy Court for the Eastern District of Michigan approved the City of Detroit’s motion to extend the automatic stay to various non-debtor parties, including certain state officials. The Court’s ruling effectively stays all pending litigation against the City, allows the City to continue to move forward with its chapter 9 case, and paves the way for a dispute over the City’s eligibility to file for chapter 9.

Debtor Migration: Intercontinental, Inter-District and Back (2013 ABI Northeast Bankruptcy Conference) - Kenneth S. Leonetti, Jeanne P. Darcey, Hon. J. Michael Deasy, Francisco Vazquez and Daniel M. Glosband

THE INTERNATIONAL SCENE: Second Circuit Clarifies Chapter 15 COMI Analysis (citation: William T. Reid, IV and R. Adam Swick, Second Circuit Clarifies Chapter 15 COMI Analysis, XXXII ABI Journal 6, 54-55, 91, July 2013) - R. Adam Swick and William T. Reid IV

On 24 July 2013, the Supreme Court handed down its long-awaited judgment in the Nortel/Lehman case: Re Nortel Companies [2013] UKSC 52. The Court looked at the position where a contribution notice (CN) or financial support direction (FSD) was issued by the Pensions Regulator (TPR) on a company that is already in insolvency proceedings in England (eg administration). How does the relevant obligation rank in the order of priority of payment?

The Supreme Court handed down its judgment in the Lehman and Nortel pension appeal cases on 24 July 2013.

This special Progress Report marks the three-year anniversary of Dodd-Frank. To highlight the occasion, we have also developed a stats-driven infographic focused on the significant year-over-year progress in Dodd-Frank implementation.

On the afternoon of July 18, 2013, the City of Detroit filed its highly anticipated petition for relief under Chapter 9 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Michigan.

On July 10, 2013, the SEC adopted amendments to Rule 144A and Rule 506 of Regulation D under the Securities Act of 1933 (the “Securities Act”).

Appellate courts continue to agree on the vitality and breadth of the safe harbor defense contained in Bankruptcy Code ("Code") § 546(e) (insulating from the trustee's fraudulent transfer or preference attack "settlement payment" or "margin payment" on a "securities contract," "commodity contract" or "forward contract" except when the debtor's payment is made with "actual intent to hinder, delay, or defraud" creditors).

On June 19, 2013, in Baker v. Ministry of the Environment, 2013 ONSC 4142 [Baker], the Ontario Divisional Court upheld the decision of the Ontario Environmental Review Tribunal (ERT) that refused to stay a Director’s order issued by the Ontario Ministry of the Environment (MOE) against former directors and officers of Northstar Aerospace (Canada) Inc. (Northstar Canada).