FAA registration law does not preempt state UCC where partially completed airplanes fail to satisfy FAA definition of “aircraft”

Mata, et al., v. Eclipse Aerospace, Inc. (In re AE Liquidation, Inc., et al.) Case No. 08-51891, 2011 BL 51047 (Bankr. D. Del. Feb. 28, 2011)

CASE SNAPSHOT

Filed under:
USA, Delaware, Aviation, Insolvency & Restructuring, Litigation, Reed Smith LLP, Federal preemption, Debtor, Breach of contract, Fraud, Liquidation, Aircraft registration, Constructive trust, Federal Aviation Administration, Uniform Commercial Code (USA), Trustee, United States bankruptcy court
Authors:
Kathleen A. Murphy
Location:
USA
Firm:
Reed Smith LLP
Landlord’s corner

In re Heller Ehrman, LLP No. 10-CV-03134 2011 WL 635224 (N.D. Cal. Feb. 11, 2011)

In In re Heller Ehrman, LLP, the court analyzed whether the statutory cap imposed on a landlord’s damages resulting from the rejection of a lease should be computed based on the time remaining in the lease, or the full damages resulting from the rejection. While noting a split of authority, the District Court determined that the computation of the cap should be based on a temporal measure to be consistent with statutory language.

Filed under:
USA, California, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Debtor, Breach of contract, Landlord, Leasehold estate, Statute of limitations, Title 11 of the US Code
Authors:
Derek J. Baker
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)  

CASE SNAPSHOT

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)

CASE SNAPSHOT

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
In a case of first impression, the Third Circuit holds that discounted cash flow analysis may be used as a ‘commercially reasonable determinant of value’ with respect to repurchase agreement acceleration under section 562

Agricole Corporate and Investment Bank New York Branch, f.k.a. Calyon New York Branch v. American Home Mortgage Holdings, Inc. (In re American Home Mortgage Holdings, Inc.), No. 09- 4295, 2011 WL 522945 (3d Cir. February 16, 2011)

CASE SNAPSHOT

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Mortgage loan, Investment banking, Liquidation, Cashflow, Default (finance), Market value, Valuation (finance), Discounted cash flow, Westlaw, Third Circuit
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP
What you need to know about the proposed new liquidation regime under Dodd-Frank

Under the proposed new insolvency regime created by Dodd-Frank, the FDIC may be appointed as receiver of a financial company if it is determined that the financial company is in default or in danger of default, and the failure of the financial company would have serious adverse effects on financial stability in the United States.The receiver is required to liquidate the failing financial company in a manner that imposes all losses on the company’s creditors and shareholders (rather than on taxpayers).

Filed under:
USA, Banking, Insolvency & Restructuring, Reed Smith LLP, Shareholder, Unsecured debt, Interest, Liquidation, Judicial review, Default (finance), Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
Authors:
Peter S. Clark, II
Location:
USA
Firm:
Reed Smith LLP
Security interest in FCC license and proceeds thereof is ‘after-acquired’ property where no sale agreement executed pre-petition, wiping out lender’s lien

Spectrum Scan LLC and Joli Lofstedt, Trustee v. Valley Bank & Trust Co. (In re Tracy Broadcasting Corporation), 438 B.R. 323 (Bankr. D. Colo. 2010)

CASE SNAPSHOT

Filed under:
USA, Colorado, Insolvency & Restructuring, Litigation, Media & Entertainment, Reed Smith LLP, Debtor, Unsecured debt, Collateral (finance), Intangible asset, Unsecured creditor, Federal Communications Commission (USA), Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, Fourth Circuit, Tenth Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Debtor unable to provide adequate assurance; court denies motions to use cash collateral and obtain DIP financing priming original lien

In re LTAP US, LLLP, Case No. 10-14125 (KG) (Bankr. D. Del. Feb. 18, 2011)

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Filed under:
USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Consideration, Life insurance, Cashflow, Secured loan, United States bankruptcy court
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Court holds that ‘all value’ must be considered in determining ‘reasonably equivalent value’ in fraudulent transfer case

First State Bank of Red Bud v. Official Committee of Unsecured Creditors (In re Schaffer), No. 10-198- GPM, 2011 WL 1118666 (S.D. Ill. March 28, 2011)

CASE SNAPSHOT

Filed under:
USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder, Debtor, Collateral (finance), Consideration, Debt, Mortgage loan, Foreclosure, Title 11 of the US Code, United States bankruptcy court
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP
Court vacates the foreclosure sale and awards damages, finding that the lender violated the automatic stay by proceeding with the sale where debtor guaranteed the loan, but had no ownership interest

In re Ebadi, No. 10-73702, 2011 WL 1257211 (Bankr. E.D.N.Y. March 30, 2011)

CASE SNAPSHOT

Filed under:
USA, New York, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Punitive damages, Bankruptcy, Surety, Debtor, Interest, Debt, Mortgage loan, Foreclosure, Second Circuit, United States bankruptcy court
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP