Over the last several years, a wide range of healthcare companies, among them hospitals, home health agencies and continuing care facilities, have faced financial distress as a result of declining revenues, high operating costs, reduction in reimbursements rates and increasing competition. Seeking relief, many hospitals and other healthcare companies are commencing chapter 11 cases and selling their assets to third parties in order to shed liabilities and facilitate an orderly transfer of their assets. Fairmont General Hospital, Saint Francis Hospital, Natchez Regional Medical C
No extraterritorial application for Bankruptcy Code rules for recovering avoided transfers. A US District Court held that Bankruptcy Code Section 550(a), which allows a trustee to recover “property transferred to the extent that a transfer is avoided” under one of the Bankruptcy Code avoidance provisions, does not apply extraterritorially. The Securities Investor Protection Act trustee for Madoff securities sought to use Section 550(a) to recover assets transferred by foreign feeder funds abroad to their foreign customers.
On March 14 2014 the Delaware Chancery Court found RBC Capital Advisors (RBC) liable for aiding and abetting the breach of fiduciary duty of the board of directors of Rural/Metro, stemming from the sale of the company to Warburg Pincus.
While the details of the court’s decision are contained in Vice Chancellor J. Travis Laster’s 91-page opinion, several salient points are important to understand:
Interest rates that remain near zero and debt maturities that have been pushed out to 2017 and 2018 have helped drive chapter 11 filings to historic lows. Has this difficult environment put corporate restructuring on life support?
An opinion issued in connection with the bankruptcy cases of Lyondell Chemical Company and its affiliates may have significant implications for shareholders who receive payments in connection with a leveraged buyout when the underlying company subsequently files for bankruptcy.
Companies of all sizes, new or mature, sometimes go out of business. “California Or Bust” is legendary in American history, but “bust” sometimes happens despite everyone’s best efforts. If you are an officer or director of a company that is heading toward its final days, there is a critical wind-down task: final paychecks. The simple (but widely ignored) fact is that officers and directors can be held personally liable for unpaid wages under federal and state law in certain circumstances, and the entity’s bankruptcy status often has no effect on individual liability.
The US Bankruptcy Court for the Southern District of New York has issued a ruling in a chapter 11 case that could have a significant impact on future restructurings in the oil and gas industry.
On March 8, 2016, in the case of Sabine Oil and Gas Corp., Judge Shelley Chapman ruled that Sabine could reject certain pipeline and gas gathering agreements with two midstream gathering pipeline companies.
Economists are renowned for their uncanny inclination to see dark clouds on a sunny day. Restructuring professionals tend to fall into the same camp; we’re no Pollyannas when it comes to forming views on business conditions. Perhaps working extensively with challenged companies tends to skew our outlook.
A GUIDE TO RESTRUCTURING ISSUES FOR NOT-FOR-PROFIT COMPANIES AND THEIR DIRECTORS 02 | A GUIDE TO RESTRUCTURING ISSUES FOR NOT-FOR-PROFIT COMPANIES AND THEIR DIRECTORS An increasing number of not-for-profit (NFP) entities, including those in the education and healthcare industries, are facing financial challenges that may require restructuring of existing debt loads.
Restructurings are all about alternatives. It is one thing for a creditor to hold an instrument that entitles it to payment of $X on Y date. But if the debtor does not have the cash to satisfy the obligation when due, some type of restructuring must occur.