The Third Circuit expands the substantial-performance test to determine if a trademark license contract is executory

In re Exide Technologies, 607 F3d 957 (3rd Cir June 1, 2010)

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Filed under:
USA, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Bankruptcy, Debtor, Breach of contract, Employment contract, Second Circuit, United States bankruptcy court, Third Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Sellers beware - unauthorized payments from ‘cash collateral’ will be avoided

Suppliers to chapter 11 debtors-in-possession should always ensure that they are not being paid from the debtor’s “cash collateral” without court approval. Marathon Petroleum Company supplied products to debtor Delco Oil in the ordinary course of its business during the bankruptcy case, but was forced to return all of the postpetition payments it received from Delco, pursuant to section 549 of the Bankruptcy Code. Marathon was required to return these payments because they were deemed part of the cash collateral that was secured by Delco’s pre-petition creditor, CapitalSource Finance.

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Collateral (finance), Secured loan, Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, United States bankruptcy court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Court breaks from majority rule, granting retirees post-petition rights greater than pre-petition rights

IUE-CWA v Visteon Corporation, 2010 WL 2735715 (3rd Cir July 13, 2010)

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Filed under:
USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Life insurance, Good faith, Collective bargaining agreements, Majority opinion, US Congress, Communications Workers of America, Trustee, Second Circuit, United States bankruptcy court, Third Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Compensation distributions triggered by events outside the debtor’s control are property of the estate and subject to avoidance

Parks v. Dittmar (In re Dittmar), 618 F.3d 1199 (10th Cir. 2010)

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Federal Reporter, Option (finance), Initial public offerings, Dissenting opinion, Bankruptcy Appellate Panel, Tenth Circuit, Circuit court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Funds ‘earmarked’ for bondholders not property of the estate and not subject to avoidance

Cooper v Centar Investments LTD, et al. (In re Trigem America Corporation), 431 B.R. 855 (C.D. Cal. 2010)

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bond (finance), Debtor, Fraud, Accounts receivable, Interest, Swap (finance), Stock exchange, Convertible bonds, Ninth Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Trustee’s use of strong-arm powers limited where state ucc gives priority to the lender that perfects its lien post-petition

Sovereign Bank v Hepner (In re Roser), 613 F.3d 1240 (10th Cir. 2010).

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Conflict of laws, Debtor, Collateral (finance), Interest, Secured loan, Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, United States bankruptcy court, Tenth Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Still in the minority, 9th Circuit BAP holds that creditors may seek adequate protection retroactively

People’s Capital and Leasing Corp. v. BIG3D, Inc. (In re BIG3D, Inc.), 438 B.R. 214 (9th Cir. BAP 2010)

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Filed under:
USA, Asset Finance, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Breach of contract, Ex post facto law, Bright-line rule, Secured creditor, Secured loan, Title 11 of the US Code, Ninth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Claims trader loses out on cure payments where debtor’s approved plan permits postconfirmation rejection of executory contracts

ReGen Capital I, Inc. v. UAL Corporation, et al., (In the Matter of UAL Corporation, et al.), 635 F.3d 312 (7th Cir. 2011).

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Filed under:
USA, Insolvency & Restructuring, Litigation, Telecoms, Reed Smith LLP, Bankruptcy, Debtor, Unsecured debt, Security (finance), Interest, Federal Reporter, Default (finance), United Airlines, Second Circuit, United States bankruptcy court, Seventh Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Court grants parent companies standing to sue lender as third-party beneficiaries of loan commitment agreements

Basic Capital Management, Inc. v. Dynex Commercial, Inc., 2011 WL 12067376 (Tex. Sup. Ct. J. Apr. 1, 2011)  

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Filed under:
USA, Texas, Banking, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Public company, Credit (finance), Breach of contract, Beneficiary, Real estate investment trust, Standing (law), Parent company, Texas Supreme Court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Trademark license agreement defines materiality, effectively establishing a perpetual executory agreement subject to perpetual rejection

Lewis Brothers Bakeries Incorporated and Chicago Baking Company v. Interstate Brands Corporation (In re Interstate Bakeries Corporation, et al.), Bk. Case No. 04-45818-11-JWV (W.D. Mo. March 21, 2011)

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Filed under:
USA, Missouri, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Debtor, Breach of contract, Federal Reporter, Eighth Circuit, United States bankruptcy court, Third Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP