Fulltext Search
The Third Circuit Court of Appeals affirms structured dismissal of Chapter 11 case, holding that a structured dismissal can deviate from the Bankruptcy Code’s priority scheme in rare circumstances

On May 21, 2015, the United States Court of Appeals for the Third Circuit affirmed a decision of the United States Bankruptcy Court for the District of Delaware, which had approved the structured dismissal of the Chapter 11 cases of Jevic Holding Corp., et al. The Court of Appeals first held that structured dismissals are not prohibited by the Bankruptcy Code, and then upheld the structured dismissal in the Jevic case, despite the fact that the settlement embodied in the structured dismissal order deviated from the Bankruptcy Code’s priority scheme.

USA, Insolvency & Restructuring, Litigation, A&O Shearman, Leveraged buyout, United States bankruptcy court, Third Circuit, US District Court for District of Delaware
The United States District Court for the Southern District of New York upholds rulings with respect to subordination, cramdown and the make-whole dispute

In a memorandum decision dated May 4, 2015, Judge Vincent L. Briccetti of the United States District Court for the Southern District of New York affirmed the September 2014 decision of Judge Robert D. Drain of the United States Bankruptcy Court for the Southern District of New York, confirming the joint plans of reorganization (the “Plan”) in the Chapter 11 cases of MPM Silicones LLC and its affiliates (“Momentive”). Appeals were taken on three separate parts of Judge Drain’s confirmation decision, each of which ultimately was affirmed by the district court:

USA, New York, Insolvency & Restructuring, Litigation, A&O Shearman
Investors prepare to pounce on possible uptick in restructurings

The mergers and acquisitions surge witnessed at the end of 2013 continued through 2014 and drove overall global mergers and acquisitions activity to 2007 pre-recession levels.

USA, Energy & Natural Resources, Insolvency & Restructuring, Weil Gotshal & Manges LLP
To deem accepted or not to deem accepted . . . that is the question

Yesterday, many citizens all over the country voted for local and state leaders and proposed ballot measures in their districts. Social media was abuzz with uploaded photos of individuals donning “I voted” stickers, and timelines were flooded with status messages urging people to exercise their civic rights and vote. Nevertheless, there were also those that opted not to vote, and their respective reasons varied.

USA, New Mexico, Insolvency & Restructuring, Litigation, Public, Weil Gotshal & Manges LLP
Southern District of New York holds in Madoff that the Bankruptcy Code cannot be used to recover extraterritorial transfers

Dealing a major blow to the trustee’s efforts to recover fraudulent transfers on behalf of the bankruptcy estate of the company run by Bernard Madoff, Judge Jed S. Rakoff of the United States District Court for the Southern District of New York held in SIPC v. Bernard L. Madoff Investment Securities LLC1 that the Bankruptcy Code cannot be used to recover fraudulent transfers of funds that occur entirely outside the United States.

USA, New York, Capital Markets, Insolvency & Restructuring, Litigation, White Collar Crime, A&O Shearman, Extraterritoriality, Title 11 of the US Code
Court pierces the corporate veil and tells designer knock off to knock-it-off

The equitable theory of veil piercing, intended to serve as a rectifying mechanism against certain fraud, dishonesty or wrongdoing, is of particular import in the bankruptcy context given that it is an attractive remedy for a creditor of an insolvent company hoping to obtain a greater recovery on its claim. State law governs veil piercing claims and sets forth the hurdles a party must overcome in order to persuade the bankruptcy court that the debtor’s corporate formalities should be ignored.

USA, Insolvency & Restructuring, Litigation, Trademarks, Weil Gotshal & Manges LLP, Fraud