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Remedies for unpaid sellers upon buyer’s insolvency

Recent insolvencies remind us that, when a seller of goods is unpaid, the question of possession leaps to the foreground. There is little value in a claim against an insolvent buyer for damages or for the price.

USA, Insolvency & Restructuring, Reed Smith LLP
Contempt and committal - powerful weapons against arbitration debtors

Obtaining a favourable arbitration award often proves to be only half of the battle. Facing obstructive counterparties refusing to honour awards, often based in jurisdictions where enforcement is slow, difficult and uncertain, is a source of regular frustration to those pursuing claims in arbitration. That is why anyone involved in international trade should be familiar with the variety of measures available to enforce their awards.

United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Litigation, Reed Smith LLP
The fall in crude oil prices: headline issues to watch

Oil price movement through 2014 and into 2015 is a consequence of market fundamentals. Europe’s continued economic woes, paired with the slowdown in China’s economy, have led to a fall in demand for oil.

At the same time, the growing U.S. shale-oil boom (over which OPEC has no control) and the pick-up in drilling in Libya have led to an excess of supply. However, in the past few months the issue has switched from how quickly oil prices have fallen, to how much further they have to fall.

USA, Energy & Natural Resources, Insolvency & Restructuring, Reed Smith LLP, Debtor, Balance sheet, Commodity market
Exit lenders liable for conversion where distributions contravene credit agreement

Prudential Insurance Company of America v. WestLB AG, 961 N.Y.S. 2d 360 (2012)

CASE SNAPSHOT

USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Credit (finance), Collateral (finance)
Seventh Circuit rules rejection of executory trademark license does not terminate the license, creates a split of authority

Sunbeam Products, Inc. v. Chicago American Manufacturing, LLC, 686 F.3d 372 (7th Cir. 2012)

CASE SNAPSHOT

In a matter of first impression in the Seventh Circuit, the court held that a chapter 7 trustee’s rejection of an executory contract did not terminate the trademark license contained therein.

FACTUAL BACKGROUND

USA, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Bankruptcy, Seventh Circuit
Subtenant retains possessory rights under section 365(h) despite explicit free and clear section 363(f) sale

In re Zota Petroleums, LLC, 482 B.R. 154 (Bankr. E.D. Va. 2012)

CASE SNAPSHOT

USA, Virginia, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP
Determining whether a chapter 11 plan is unconfirmable without a confirmation hearing

In re American Capital Equipment, LLC, 688 F.3d 145 (3d Cir. 2012)

CASE SNAPSHOT

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Discovery, Due process, Leveraged buyout, Secured creditor, United States bankruptcy court, Third Circuit
Substantive consolidation order not automatically retroactive absent language to the contrary

Giuliano v. Shorenstein Company, LLC (In re Sunset Aviation, Inc.), Adv. No. 11- 50965, Bankr. No. 09-10778, 2011 WL 4002429 (Bankr. D. Del. Sept. 7, 2011)  

CASE SNAPSHOT

USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Limited liability company, Ex post facto law, United States bankruptcy court, Sixth Circuit, US District Court for District of Delaware
Cross-affiliate netting provision in ISDA swap agreement is not enforceable against the debtor

In re Lehman Brothers Inc., Bankr. Case No. 08-01420 (JMP) (SIPA), 2011 WL 4553015 (Bankr. S.D.N.Y. Oct. 4, 2011)  

CASE SNAPSHOT

USA, Derivatives, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Debt, UBS, International Swaps and Derivatives Association, Lehman Brothers, Title 11 of the US Code, United States bankruptcy court
Split in courts continues—private stock purchase payments not protected by Section 546 safe harbor

Geltzer v. Mooney (In re MacMenamin’s Grill Ltd.), Adv. Case. No. 09-8266, Bankr. Case No. 08-23660, 2011 WL 1549056 (Bankr. S.D.N.Y. Apr. 21, 2011)

CASE SNAPSHOT

USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder, Debtor, Security (finance), Fraud, Safe harbor (law), Writ, Leveraged buyout, Systemic risk, Secured loan, Title 11 of the US Code, Trustee, United States bankruptcy court