(6th Cir. Nov. 14, 2017)
Citing historically low electricity prices and a challenging business environment for power generators, Chicago-based Exelon Corp. filed Chapter 11 bankruptcy protections for Exelon Generation Texas Power LLC (“EGTP”) — a merchant generation unit Exelon owns in Texas. The unit will continue to own and operate the 1,265 MW Handley Generating Station in Fort Worth, Texas, in exchange for a $60 million payment to the lenders.
Velocity Holding Company, Inc., a wholesale distributor, designer, manufacturer, retailer and marketer of branded aftermarket parts, accessories and apparel for the powersports (motorcycle and related) industry based in Coppell, Texas, along with nineteen of its affiliates and subsidiaries, has filed a petition for relief under Chapter 11 in the Bankruptc
Richard Cordray, the first and only Director of the Consumer Financial Protection Bureau, announced today that he will resign from the Bureau by the end of November–presumably in order to explore a run for governor in his home state of Ohio. Cordray, a Democrat, was appointed to serve as the agency’s first Director in a recess appointment by former President Obama in 2012. He was subsequently confirmed by the Senate in July of 2013. Since that time, Cordray has been the face of the young agency as it pursued aggressive policy and enforcement initiatives.
Perhaps this is one of the first articles you’re reading about the debt crisis in Venezuela. It won’t be the last. The situation there is bad and will get worse.
Substantial changes to the Federal Rules of Bankruptcy Procedure (“FRBP”), which become effective as of December 1, 2017, could greatly affect the rights of various creditors. One of the most significant changes is the adoption of an official form Chapter 13 Plan. This is the first time Congress has implemented a national form Chapter 13 Plan. The form Chapter 13 Plan will allow creditors to more easily identify how their claims are going to be treated and provide more uniformity amongst the various jurisdictions. Districts have the ability to opt out of using the fo
In Cal Dive Offshore Contractors, Inc. v. M/V SAMPSON, the U.S. District Court for the Southern District of New York considered a claim by vessel manager Cal Dive Offshore Contractors, Inc. (“Cal Dive”) for unpaid services against the vessel in rem, the owner CVI Global Lux Oil and Gas 4 S.a.r.l (“CVI”), and CarVal investors, LLC (“CarVal”) as owner’s agent. Following a trial, the district court held that Cal Dive’s maritime lien and in personam claims failed. Cal Dive has since filed an appeal, which remains to be decided.
Creditors need to know of significant changes about to occur to the Federal Rules of Bankruptcy Procedure ("Bankruptcy Rules"). On December 1, 2017, certain amendments to the Bankruptcy Rules will become effective. This article discusses two of the changes: 1) the period for filing proofs of claim is being shortened, and 2) secured creditors must timely file a claim to receive a distribution.
Exelco NV, a diamond and precious metals trader based in Antwerp, Belgium, has filed a voluntary petition under Chapter 15 in the Bankruptcy Court for the District of Delaware (Case No. 17-12409).
The Bottom Line
The Third Circuit recently held, in Schepis v. Burtch (In re Pursuit Capital Management, LLC), No. 16-3953, 2017 WL 4783009 (3d Cir. Oct. 24, 2017), that under section 363(m) of the Bankruptcy Code, if a party does not seek a stay pending appeal of a sale order, it is highly likely that any appeal of such sale will be determined statutorily moot. That was certainly the case here.
What Happened?
Background