A recent ruling from the United States District Court for the Southern District of New York sent shock waves through the legal and financial community, with some shouting that this “could be a gamestopper for the private equity business.”1 Although the ruling in In re Nine West LBO Securities Litigation2 breaks new ground and arguably narrows the protections available to directors under the normally-broad business judgment rule, there are clear lessons others can take from this saga to prevent a similar fate.
Executive Summary
A recent decision from the United States Bankruptcy Court for the Northern District of Texas, In re Care Ctrs., LLC, No. 18-33967, 2020 Bankr. LEXIS 3205 (Bankr. N.D. Tex. Nov. 12, 2020), examined (1) the scope of bankruptcy court subject-matter jurisdiction for post-confirmation actions filed in state court and removed to bankruptcy court; and (2) when the court must or should abstain and remand a proceeding back to the court where the action was originally brought.
OVERVIEW
El pasado 18 de noviembre de 2020, entró en vigor el Real Decreto-ley 34/2020, de 17 de noviembre de 2020, de medidas urgentes de apoyo a la solvencia empresarial y al sector energético, y en materia tributaria. |
Law 3/2020, of 18 September, on procedural and organisational measures to tackle COVID-19 in the area of the Administration of Justice entered into effect on 20 September 2020.
The new insolvency and corporate measures are brought in with three primary aims:
El pasado 20 de septiembre de 2020, entró en vigor la Ley 3/2020, de 18 de septiembre, de medidas procesales y organizativas para hacer frente al COVID-19 en el ámbito de la Administración de Justicia.
Según se establece, estas nuevas medidas concursales y societarias se llevan a cabo con una triple finalidad:
In an important decision issued at the end of August, the United States Court of Appeals for the Third Circuit, in In re Tribune Co., Case No. 18-2909 (3d Cir. Aug. 26, 2020), held that subordination agreements need not be strictly enforced when confirming a chapter 11 plan pursuant to the Bankruptcy Code’s cramdown provision in section 1129(b)(1). In its decision, the Third Circuit also encouraged bankruptcy courts to apply “a more flexible unfair-discrimination standard” and set forth eight guiding principles to aid in that effort.
El pasado día 1 de septiembre entró en vigor el Real Decreto Legislativo 1/2020, de 5 de mayo, por el que se aprueba el texto refundido de la Ley Concursal (TRLC). De este modo, la Ley 22/2003, de 9 de julio, Concursal queda derogada casi en su totalidad.
Según se establece en el Preámbulo del TRLC, este texto refundido se ha creado ante la imprescindible necesidad de reordenación, clarificación y armonización tanto de la Ley Concursal como de las normas que con rango de ley que modificaron la misma.
Royal Legislative Decree 1/2020, of 5 May, which approves the Recast Spanish Insolvency Law (Texto Refundido de la Ley Concursal, or TRLC) entered into effect on 1 September. As a result, the former Insolvency Law 22/2003, of 9 July, has been derogated almost in its entirety.
According to the TRLC’s Preamble, Spanish insolvency legislation has been amended given the need to reorder, clarify and harmonise the former Insolvency Law and the provisions that have since amended it.
With the aim of managing the potential ramifications of the measures that have so far been implemented in the context of the COVID-19 crisis, the Spanish Government has approved Royal Decree-law 16/2020, of 28 April, of procedural and organisational measures to tackle COVID-19 connected to the administration of justice.