New decision clarifies rules regarding derivative standing for creditors in Delaware Court of Chancery

On May 4, 2015, the Delaware Court of Chancery issued an important decision regarding creditor standing to  maintain a derivative action on behalf of an insolvent corporation. In Quadrant Structured Products Company v. Vertin et al., C.A. No.

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Shareholder, Fiduciary, Credit default swap, Derivative suit, Delaware Court of Chancery
Authors:
Gregory A. Horowitz , David E. Blabey, Jr , Tuvia Peretz
Location:
USA
Firm:
Kramer Levin Naftalis & Frankel LLP
Second Circuit Holds That So-Called “Flip” Clause Payments Are Protected by Section 560 of the Bankruptcy Code

The Bottom Line

Filed under:
USA, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Kramer Levin Naftalis & Frankel LLP, Collateralized debt obligation, Credit default swap, Title 11 of the US Code, Second Circuit, Trustee
Authors:
David E. Blabey, Jr
Location:
USA
Firm:
Kramer Levin Naftalis & Frankel LLP
First Circuit Clarifies That When Determining The Value of Legal Claims as Collateral, a “Gallimaufry” of Factors Must Be Addressed to Meet Burden of Proof

The Bottom Line

In Wheeling & Lake Erie Ry. Co. v. Keach (In re Montreal, Me. & Atl. Ry.), No. 19-1894 (1st Cir. Apr. 9, 2020), the First Circuit held that when determining the value of legal claims as collateral, the party with the burden of proof must establish the likely validity of the claim and the likelihood of recovery — demonstrating possible damages alone does not suffice.

What Happened?

Background

Filed under:
USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Burden of proof, Title 11 of the US Code, First Circuit
Authors:
David E. Blabey, Jr
Location:
USA
Firm:
Kramer Levin Naftalis & Frankel LLP