The U.S. Bankruptcy Court for the Southern District of New York recently declined to dismiss the Chapter 11 petitions of several subsidiaries of General Growth Properties, Inc. (GGP) demonstrating that special purpose entities (SPEs), designed to avoid bankruptcy, can be subject to bankruptcy proceedings despite having strong cash flows, no debt defaults and "bankruptcy remote" structures.
USA, New York, Insolvency & Restructuring, Litigation, Foley & Lardner LLP, Bankruptcy, Shareholder, Debtor, Security (finance), Debt, Mortgage loan, Bad faith, Cashflow, Default (finance), Commercial mortgage-backed security, Secured loan, United States bankruptcy court
Oil and gas producers in Texas and a handful of other states have had the comfort of believing that they held purchase money security interests against the production in the hands of first purchasers and proceeds of that production. Now, the law supporting that belief has come under fire.
USA, Texas, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Foley & Lardner LLP, Bankruptcy, Letter of credit, Collateral (finance), Fossil fuel, Subsidiary, Uniform Commercial Code (USA), United States bankruptcy court, Third Circuit