Fulltext Search
Pragmatic Legislation to Facilitate Insolvency Processes During COVID-19

Late in the evening on 30 July, the last day before its summer break, the Irish parliament (Oireachtas) passed the Companies (Miscellaneous Provisions) (Covid-19) Bill 2020. This is likely to be signed into law and commenced within two weeks.

Three of its provisions are particularly relevant to insolvency processes during the COVID-19 crisis.

Creditors’ meetings

Ireland, Insolvency & Restructuring, Mason Hayes & Curran LLP, Coronavirus, Microsoft
Second Circuit holds that SIPA does not permit an inflation or interest adjustment to “net equity” claims for customer property

In In re Bernard L. Madoff Investment Securities LLC, No. 14-97-bk(L), 2015 WL 727965 (2d Cir. Feb.

USA, Capital Markets, Insolvency & Restructuring, Litigation, Sheppard Mullin Richter & Hampton LLP, Broker-dealer, Inflation, Second Circuit
Commercial division rules on enforceability of liquidated damages clauses

In Wells Fargo Bank Northwest v. US Airways, Inc., 2011 NY Slip Op 52188(U) (Sup. Ct. N.Y. County Dec. 1, 2011), Justice Bernard J. Fried held that a liquidated damages provision requiring payment of a holdover fee equal to twice the monthly rent was reasonable and did not function as a penalty under New York contract law. The case arose from three aircraft sale and leaseback transactions, pursuant to which Defendant US Airways, Inc. (“US Airways”), sold to Plaintiff Wells Fargo Bank Northwest (“Wells Fargo”), and Wells Fargo leased back to US Airways, three Boeing 737 aircraft.

USA, New York, Aviation, Insolvency & Restructuring, Litigation, Sheppard Mullin Richter & Hampton LLP, Liquidated damages, Wells Fargo