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Third Circuit clarifies burden of proof analysis under section 506(a) valuation, and allows lien stripping in chapter 11

In re Heritage Highgate, 679 F.3d 132 (3d Cir. 2012)

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USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Collateral (finance), Legal burden of proof, Fair market value, Secured creditor, Third Circuit
Letter of credit payment made independent of bond indenture is not a ‘settlement payment’ protected by section 546(e)

In re Qimonda Richmond, LLC, 467 B.R. 318 (Bankr. D. Del. 2012)

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USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bond (finance), Letter of credit, Debtor, Security (finance), Citibank
‘Substantive rights’ not assignable, intercreditor voting rights assignment nullified

In re SW Boston Hotel Venture, LLC, 460 B.R. 38 (Bankr. D. Mass. 2011)

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USA, Massachusetts, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Condominium, Secured creditor
Pre-petition liens on FCC license proceeds can attach to post-petition proceeds

Sprint Nextel Corporation v. U.S. Bank N.A. (In re TerreStar Networks, Inc.), Case No. 10-15446 (Bankr. S.D.N.Y., Aug. 19, 2011)

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USA, Insolvency & Restructuring, Litigation, Telecoms, Reed Smith LLP, Bankruptcy, Collateral (finance), Secured creditor, Unsecured creditor, Federal Communications Commission (USA), Sprint Corporation
Secured creditors need not file a proof of claim to lift the automatic stay to proceed with a foreclosure action

In the Matter of Richard Louis Alexander (7th Cir., 2011) U.S. App. LEXIS 17110, (August 16, 2011)

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USA, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Bankruptcy, Debtor, Foreclosure, Secured creditor, United States bankruptcy court, Seventh Circuit
Shareholders permitted to retain ownership under ‘new value exception’ to ‘absolute priority rule’

In re Red Mountain Machinery Company, 448 B.R. 1 (Bankr. D. Ariz. 2011)

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USA, Arizona, Insolvency & Restructuring, Litigation, Reed Smith LLP, Shareholder, Debtor, Unsecured debt, Interest, Line of credit, Chief financial officer, United States bankruptcy court
Subrogation to ‘claims’ entitles subrogee to vote on behalf of itself and subrogor

Avondale Gateway Center Entitlement, LLC v. National Bank of Arizona, et al. (In re Avondale Gateway Center Entitlement, LLC), 2011 WL 1376997 (D. Ariz. Apr. 12, 2011)

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USA, Arizona, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Limited liability company, Debt, Voting, Capital punishment, Title 11 of the US Code, Arizona Supreme Court
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)  

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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
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)

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USA, Missouri, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Debtor, Breach of contract, Federal Reporter, Eighth Circuit, United States bankruptcy court, Third Circuit
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)

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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