A Chapter 11 debtor’s reorganization plan purporting to cure a default under a pre-bankruptcy loan agreement must pay “the agreed-upon default rate interest,” consistent with “the underlying agreement” and the “applicable nonbankruptcy law,” held the U.S. Court of Appeals for the Eleventh Circuit on Aug. 31, 2015. In re Sagamore Partners, Ltd., 2015 WL 5091909, at *4 (11th Cir. Aug. 31, 2015).
A "Saab" Story with a Happy Ending: An Inside Look at the Saab Bankruptcy Case
Creditors often assume the worst when they hear that a company that owes them money filed "bankruptcy." They fear that their debt will be completely wiped out or that they will only collect pennies on the dollar. And while that is usually the result, a chapter 11 bankruptcy filing can often lead to creditors being paid a substantial portion of their debt.
How many ages hence / Shall this our lofty scene be acted o’er, / In states unborn, and accents yet unknown!
– William Shakespeare, Julius Caesar
Some bankruptcy cases can have long tails with issues developing years after the entities confirm their chapter 11 plans. That seems to be particularly true when cases deal with mass torts. As the recent case of Piper Aircraft Corporation demonstrates, an issue can arise in a chapter 11 case over twenty years after the debtor’s plan was confirmed. In
When the Supreme Court issued its decision in Baker & Botts L.L.P. v. ASARCO LLC in June, it caused something of a flutter in the bankruptcy community. The decision held that a professional could not recover for the fees it incurred in defending against objections to its fee application.
On July 30, 2015, Relativity Media, along with 144 of its affiliates, filed a Chapter 11 bankruptcy. The multi-million dollar entertainment company, which produced films such as The Social Network, The Fighter, Limitless, and others, is headquartered on Beverly Blvd. in Beverly Hills. As of the date of the bankruptcy, according to its court filings, Relativity and its affiliates had approximately 89 full- and part-time employees and approximately 760 temporary production personnel in the film and television side of the business.
On September 2, the FDIC issued its latest Quarterly Banking Profile. The Profile indicates that community banks and savings institutions reported an aggregate net income of $43 billion in the second quarter of 2015, the highest quarterly income on record. The FDIC attributed this rise in second quarter income to steady loan growth at most institutions along with a sharp increase in community bank earnings as compared to the second quarter of 2014.
Mediation has become an invaluable tool in large chapter 11 cases.
In resolving a motion for leave to file an amended complaint to add new claims, the United States Bankruptcy Court for the Southern District of New York in Hosking v.