Welcome to the fifth edition of this publication which has been compiled by the Salans Global Corporate Group comprising experienced lawyers from each of our 22 offices. Previous editions have dealt with: the establishment of companies and partnerships in key jurisdictions; the use of warranties in international acquisitions; the issue and transfer of securities in key jurisdictions;and governmental approvals and third party consents in corporate transactions.

On May 7, 2010, the New York Office released an Alert Memo entitled "Lehman Bankruptcy Court Declines To Hold That The Safe Harbor Provisions Of Sections 560 and 561 Of The Bankruptcy Code Permit An Exception To Mutuality In Setoff". The Alert Memo reviews the May 5th decision of the Bankruptcy Court for the Southern District of New York holding that mutuality is a prerequisite to the exercise in bankruptcy of a contractual right of setoff under a derivatives contract, notwithstanding the absence of an explicit mutuality requirement in Sections 560 and 561.

Richard Kohn and Jonathan Cooper, both principals in the firm’s Commercial Finance Group, gave a presentation at the American Bar Association Business Law Section’s spring meeting on April 22 in Denver, Colorado entitled, “Shoring Up Distressed Cross-Border Loans.” As a result of the recent economic crisis, loan portfolios throughout the country are riddled with distressed loans. Many of these distressed loans involve a cross-border element.

In re Philadelphia Newspapers, LLC, et al.1: Lenders Purchase Debtors’ Assets Pursuant to Chapter 11 Plan in Response to Denial of Right to Credit Bid

As discussed in our alert memo, dated March 25, 2010, the United States Court of Appeals for the Third Circuit held in In re Philadelphia Newspapers, LLC, et al.2 that a dissenting class of secured creditors does not have an absolute right to credit bid where its collateral is being sold free and clear of the secured creditors’ liens pursuant to a Chapter 11 plan (please click here to view the March 25 alert memo).

By TIMOTHY F. GEITHNER. Timothy F. Geithner is the secretary of the Treasury. Washington THE devastation wrought by the great recession is still all too real for millions of Americans who lost their jobs, businesses and homes. The scars of the crisis are fresh, and every new economic report brings another wave of anxiety.

On April 20, 2005, Chapter 15 of the U.S. Bankruptcy Code, governing cross-border insolvencies, came into force as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Cross-Border Issues Affecting Chapter 11 - William Q. Derrough, Kenneth A. Buckfire, Dennis F. Dunne, Cecelia G. Morris, Jeffrey S. Sabin, Joseph Samet

BUILDING BLOCKS: Introduction to Recognition under Chapter 15 - Douglas E. Deutsch & Francisco Vazquez

CODE TO CODE: (citation: Hon. Francis G. Conrad & Richard J. Corbi, Are Preference Lawsuits Permitted in Chapter 15 Cases? A Tale of Two Decisions, XXIX ABI Journal 4, 34, 74-76, May 2010) - Hon. Francis G. Conrad & Richard J. Corbi

Many observers assign a large part of the blame for the 2008 financial crisis to the "big three" credit rating agencies, which gave their AAA seal of approval to worthless investments. Now those same agencies are helping to bring the euro zone to its knees -- and no one is trying to stop them, Spiegel Online reported. Wherever things blow up in the financial world, the rating agencies' tracks can be found. The anonymous analysts of S&P, Moody's and Fitch (the smallest of the "big three") were center stage during the global crash.