Bankers and their counsel should note that during its December lame-duck session, the Ohio General Assembly passed the Ohio Legacy Trust Act (Am. Sub. H.B. 479), which will go into effect March 27, 2013. The Act creates borrower-friendly provisions prohibiting the use of so-called “Cherryland” insolvency carve-outs in nonrecourse loan documents which will be of interest to all financial institutions engaged in commercial lending in Ohio.
On January 17, 2013, in a lengthy and closely reasoned opinion,1 Judge Sean Lane of the Bankruptcy Court for the Southern District of New York authorized American Airlines, Inc. (“American”) to repay $1.3 billion in debt without payment of a make-whole premium over the objection of U.S.
Atari, Inc., the creator of the primordial video game “Pong”, filed for Chapter 11 yesterday in the U.S.
Last week the United States Bankruptcy Court for the Southern District of New York approved debtor-American Airlines’ motion to enter into a secured financing transaction and repay certain pre-petition aircraft financing without paying make-whole premiums. The indenture trustee sought to ground the motion by asserting that the make-whole had to be paid, but it was the indenture trustee, not American, that crashed and burned.
Chapter 15 of the Bankruptcy Code,1 the U.S. enacted equivalent of the UNCITRAL Model Law On Cross-Border Insolvencies, has received a fair amount of use by distressed shipping companies since it was enacted in 2005. In 2007, we wrote in these pages that Chapter 15 might provide a welcome U.S. safe harbor. (See “Shipping, Finance, and Insolvencies: A Homeport in the United States?” Mainbrace, June 2007, No. 2). More recently, in 2009, we published “Shipping, Finance, and Insolvencies: The Black Swan Comes Home to Roost” (Mainbrace, January 2009, No.
Presumed Reasonable Absent Certain Circumstances
CASE SNAPSHOT
The Bankruptcy Code provides the debtor or trustee with a variety of tools to augment the estate through avoidance and recovery actions.This paper will address recent cases of interest involving fraudulent transfers within the 10th Circuit and in other jurisdictions.