Non-vessel operating common carriers (NVOCCs) are often vulnerable to importer/exporter debtors when they declare bankruptcy. As brick and mortar retailers continue to face dwindling market share due to the dramatic rise in online shopping – $1.25 billion per day in online consumer purchases in the U.S., and doubling every five years – risks to NVOCCs rise.

The Association has completed its lien foreclosure action and is now the owner of a unit. Now what?

Last week, the DOJ sent a letter to trustees who handle consumer bankruptcy reminding them that marijuana is a federally illegal drug and warned them not to handle any money from the sale of marijuana-related property.

More and more frequently the following question arises: “What do we do about personal, sensitive, and business information owned by or residing with a financially troubled company?” Information is an intangible asset and often has significant value. Information increasingly resides with a party other than the owner and may need to be transferred in unexpected ways. Unfortunately, the thinking about this question often arises after financial distress is readily apparent, such as after a bankruptcy filing.

On September 9, 2016, the U.S. Bankruptcy Court for the District of New Jersey issued a two-part ruling that provides partial relief to cargo interests, including non-vessel operating common carriers (NVOCCs), impacted by Hanjin Shipping Co.’s Chapter 15 bankruptcy filing.

On August 31, 2016, Hanjin Shipping Co. filed for bankruptcy protection in South Korea. Creditors “gave up the ship,” so to speak, and stopped the bleeding. Two days later, Hanjin filed in U.S. Bankruptcy Court for the District of New Jersey for Chapter 15, which provides a mechanism in the U.S. for resolving problems that arise in cross-border bankruptcies. Three out of four U.S. shippers reportedly have cargo on Hanjin vessels, so the repercussions of the bankruptcy filings are widespread.

“Just when I thought I was out…they pull me back in.” That must be what GM’s executives (and counsel) were thinking when the Second Circuit handed down its recent decision overturning portions of the 2015 Bankruptcy Court decision that could have immunized the “New GM” from “Old GM’s” liability related to the ignition switch recall of 2014. The decision also calls into question the 2009 sale order as a potential violation of the victims’ due process rights.

On November 21, 2014, the United States Court of Appeals for the Seventh Circuit issued a very tough opinion for lenders.  In this case, a borrower signed a $1,100,000.00 Promissory Note dated December 15 and an Agricultural Security Agreement dated December 13. The Security Agreement said that it granted the bank a security interest in crops and farm equipment. The Promissory Note referred to the Security Agreement. Unfortunately, the Security Agreement stated that it secured a Promissory Note dated December 13, not December 15.

The Bankruptcy Court’s conversion of Section 11 of the Illinois Conveyance Act from a safe harbor provision to a mandatory checklist that must be satisfied to survive avoidance challenges has been reversed (Crane Bankruptcy – D Ct decision).  The Central District of Illinois holds compliance with the statute is permissive.  While the statute provides that mortgages containing the enumerated terms, including the interest rate and matu

Earlier this week we reported that St. Louis County’s foreclosure mediation ordinance was set to be effective today, September 28, 2012. However, a St.