Lehman Brothers seeks approval of claims resolution procedures

On March 15, 2010 Lehman Brothers Holdings, Inc. and its affiliated debtors (the “Debtors”) filed a motion (the “Motion”) with the Bankruptcy Court overseeing the Debtors’ Chapter 11 cases (the “Court”) seeking authorization to establish certain claims and alternative dispute resolution procedures designed to expedite the process of reconciling claims filed against the Debtors’ estates.

The procedures, set forth in detail in an exhibit to the proposed order filed with the Motion, are summarized as follows:

Filed under:
USA, Insolvency & Restructuring, Schulte Roth & Zabel LLP, Bankruptcy, Injunction, Mediation, Liquidation, Lehman Brothers, United States bankruptcy court
Authors:
Michael L. Cook , Lawrence V. Gelber , Adam C. Harris , David M. Hillman
Location:
USA
Firm:
Schulte Roth & Zabel LLP
Supreme Court affirms secured creditors’ credit bid rights under plan

The United States Supreme Court unanimously[1] held that secured creditors have a statutory right to credit bid their debt at an asset sale conducted under a so-called "cramdown" plan. RadLAX Gateway Hotels, LLC et al., v. Amalgamated Bank (In re River Road Hotel Partners, LLC),__S.Ct.__ No. 11-166, 2012 WL 1912197 (U.S. May 29, 2012).

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Credit (finance), Debtor, Collateral (finance), Federal Reporter, Secured creditor, SCOTUS
Authors:
Lawrence V. Gelber , James T. Bentley
Location:
USA
Firm:
Schulte Roth & Zabel LLP
Third Circuit refines break-up standard

Break-up fees1 remain difficult for initial (or so-called “stalking horse”) bidders to obtain in the Third Circuit. In Kelson Channelview LLC v. Reliant Energy Channelview LP (In re Reliant Energy Channelview LP), No. 09-2074 (3d Cir. Jan.

Filed under:
USA, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Shareholder, Debtor, Limited liability company, Testimony, Bright-line rule, Business judgement rule, United States bankruptcy court, Third Circuit
Authors:
Lawrence V. Gelber , James T. Bentley
Location:
USA
Firm:
Schulte Roth & Zabel LLP