Law360, New York (May 19, 2014, 1:28 PM ET) -- On May 13, 2014, the United States Court of Appeals for the Sixth Circuit issued a decision that reversed the confirmation of an individual Chapter 11 debtor’s plan of reorganization on the grounds that the plan violated the “absolute priority rule” by allowing the debtor to keep most of his unencumbered assets without paying his creditors in full.[1] The Sixth Circuit disagreed with the bankruptcy court’s conclusion that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 eliminated the absolute priority rule for Chapter 11...

Law360, New York (January 06, 2014, 2:30 PM ET) -- On Dec.

The OECD (Organization for Economic Co-operation and Development) Common Reporting Standard (CRS) is a big step towards a globally coordinated approach to the disclosure of income earned by individuals and organizations.

Fraudulent conveyance litigation, whether filed in federal or state court, is typically designed to recover assets intentionally transferred to a third party as part of a debtor’s scheme to avoid the claims of its creditors. What is often misunderstood in such litigation is whether a defendant’s lack of knowledge regarding the debtor’s fraudulent intent warrants a motion to dismiss. Unfair as it may seem, the U.S. Court of Appeals for the Third Circuit has recently confirmed that only the debtor’s intent is relevant in SB Liquidation Trust v. Preferred Bank (In re Syntax-Brillian), 2014 U.S.

The Securities and Exchange Commission (“SEC”) recently sanctioned a number of corporate insiders and public companies for failing to timely report securities holdings and transactions in company stock. The list of respondents included CEOs, board members, investment firms and other major shareholders who failed to timely report their own transactions and holdings, as well as publicly traded companies that contributed to, or failed to report, filing delays by insiders.

On August 27, 2014, the U.S. Bankruptcy Court for the Southern District of New York (the “Court”) issued a decision enforcing the terms of a Brazilian reorganization plan pursuant to Chapter 15 of the U.S. Bankruptcy Code. In re Rede Energia, S.A., Case No. 14-10078 (SCC) (Bankr. S.D.N.Y. August 27, 2014), ECF No. 35 (the “Decision”). Bankruptcy Judge Shelley C. Chapman rejected challenges by a minority group of bondholders who had alleged that the Brazilian Bankruptcy Proceeding was contrary to U.S. public policy.

On August 26, 2014, the U.S. Bankruptcy Court for the Southern District of New York held that the automatic acceleration of debt resulting from a borrower’s bankruptcy filing did not trigger the borrower’s obligation to pay a make-whole premium to its lenders in satisfaction of their claims under a chapter 11 plan. In re MPM Silicones, LLC, Case No. 14-22503-rdd (Bankr. S.D.N.Y). Bankruptcy Judge Robert D.

by Bob Rajan. Bob Rajan and colleagues explain why a Chief Restructuring Officer (CRO) is often such an important factor in achieving the goal of a successful restructuring. Like all things in life, everything evolves. But whether one believes in the Theory of Evolution, Creationism or some other founding principle of human existence, one will agree that some constants remain throughout time.

by David Ingram and Carmel King. David Ingram and Carmel King list the important steps to take at the very beginning of a case where there is a suspicion of fraud and dishonesty of the directors. The “golden hour” is that brief period of time following a serious accident in which the outcome for a victim of that accident will depend on what happens in that first hour. Likewise, the first actions taken by a liquidator can dictate the outcome of the case.

The U.S. Government has significantly expanded restrictions on dealings by U.S. entities with Russian entities — particularly major Russian banks and energy sector companies. These actions relate to the ongoing conflict in Ukraine and the efforts by the United States, the European Union (“EU”) and other governments to try to persuade Russia to end its military engagement on behalf of the separatist movement in Ukraine. The EU also announced an expansion of its sanctions against Russia.