In Short:
The Situation: After the nationalization of the Dutch SNS banking and insurance group, the Dutch Minister of Finance offered zero compensation to expropriated bondholders.
The Result: Ten years after the nationalization, the Dutch Supreme Court confirmed compensation awards totaling approximately €1 billion including accrued interest.
Looking Ahead: The SNS case provides some interesting lessons on where those seeking compensation in the context of bank bailouts and resolutions may head.
Recent expressions of concern about courts mandating mediation reminded me of a mandated mediation process that worked well: the City of Detroit bankruptcy.
An illustration of the success of mandated mediation in the Detroit case is this line:
The Bankruptcy Judge“put an end to the public bickering over the water deal by ordering the parties into confidential mediation.”
In this second part of our blog exploring the various issues courts need to address in applying the Bankruptcy Code to cryptocurrency, we expand upon our roadmap.
Following its acquisition of the Regal cinema chain in the US in 2018, Cineworld, with its English-incorporated parent company, London premium listing and status as a household name in the UK cinema industry, became a truly transatlantic business. Add that to its businesses in Central and Eastern Europe and Israel, and Cineworld is one of the largest cinema chains in the world, operating in 10 countries with 672 sites and 8,181 screens.
In Svenhard’s Swedish Bakery v. United States Bakery, Bk. No. 19-15277, 2023 WL 5541420 (9th Cir. Aug. 29, 2023), the Ninth Circuit held that a settlement agreement that resolved an employer’s withdrawal liability to a multiemployer pension fund was not an executory contract that could be assumed and assigned to a third-party when that employer subsequently filed for bankruptcy. The decision is instructive for multiemployer funds and employers that negotiate settlement agreements to resolve these types of liabilities.
Background
THE BRIEF
FINANCIAL SERVICES LITIGATION QUARTERLY
FALL 2023
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TABLE OF CONTENTS
Were There Underwriting Requirements for PPP Loans After All? The Sound-Value Requirement May Pose Risk for PPP Lenders
3
Noteworthy10
District Court Upholds New ERISA Rules on ESG Investing
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Fourth Circuit Holds That Class-Action Waivers Must Be Addressed Before Class Certification
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Ninth Circuit: Fees for Claims-Made Settlements Must Be Based on Actual Recovery
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In Purdue Pharma, the U.S. Supreme Court grants certiorari on this question:
The United States Supreme Court agreed today to review a Fourth Circuit decision that denied an insurer standing to object to an asbestos producer’s Chapter 11 reorganization plan, on the basis that the insurer’s interests were not affected by the plan. The case provides the high court with an opportunity to resolve a recurring issue in mass tort bankruptcies which has split the circuits.
The Federal Trade Commission (FTC) announced it has reached a settlement with the bankrupt crypto company Voyager over the company’s alleged deceptive crypto marketing practices. Specifically, the FTC’s complaint alleges that from at least 2018 until its declaration of bankruptcy in July 2022, Voyager enticed consumers with promises that their deposits were insured by the Federal Deposit Insurance Corporation (FDIC) and were “safe.” However, consumers’ deposits with Voyager were not eligible for FDIC insurance and were not protected in the event that Voyager failed.