Fulltext Search
Trademark Licensee May Continue Using Trademark Following Debtor’s Rejection of License Agreement, US Supreme Court Rules

Yesterday, in an 8-1 decision, the US Supreme Court held in Mission Product Holdings, Inc. v.

USA, Insolvency & Restructuring, Litigation, Trademarks, Mayer Brown
Debtor Is a Financial Institution for Purposes of Settlement Payment Safe Harbor, Rules Southern District of New York

On April 23, 2019, the United States District Court for the Southern District of New York, in fraudulent transfer litigation arising out of the 2007 leveraged buyout of the Tribune Company,1 ruled on one of the significant issues left unresolved by the US Supreme Court in its Merit Management decision last year.

USA, New York, Capital Markets, Insolvency & Restructuring, Litigation, Mayer Brown, Bankruptcy, Supreme Court of the United States, US District Court for the Southern District of New York
Are Power Purchase and Similar Agreements Excluded from the Automatic Stay under the Safe Harbor for Forward Contracts? Recent US Utility Bankruptcies Raise This and Other Important Questions

Both the First Energy Solutions and PG&E bankruptcies have seen proceedings regarding power purchase and similar agreements (PPAs) that raise this question.

Background

Contracts often contain provisions that enable a party to terminate or modify the contract based on the other party's bankruptcy filing, insolvency or deteriorating financial condition. In general, the Bankruptcy Code renders these types of provisions (sometimes referred to as "ipso facto" clauses) ineffective. Specifically, under section 365(e)(1) of the Bankruptcy Code (emphasis added):

USA, Derivatives, Insolvency & Restructuring, Litigation, Mayer Brown, Title 11 of the US Code, United States bankruptcy court
Into the Void (Again): PG&E Intends to Enter Bankruptcy Proceedings - Possible Consequences for Renewable PPAs

After months of speculation, it is now official : PG&E (both the parent, PG&E Corporation, and its subsidiary, Pacific Gas & Electric Company), having faced extraordinary challenges relating to catastrophic wildfires in 2017 and 2018, has announced that a voluntary bankruptcy filing “is appropriate, necessary and in the best interests of all stakeholders, including wildfire claimants, PG&E’s other creditors and shareholders, and is ultimately the only viable option to restore PG&E’s financial stability to fund ongoing operations and provide safe service to customers.” As

USA, California, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Mayer Brown, Renewable energy, Power purchase agreement, FERC, California Public Utilities Commission, Title 11 of the US Code, Federal Power Act 1920 (USA)
Going Once, Going Twice: Avoiding a Prepetition Foreclosure Sale in Chapter 11

Among the many protections afforded creditors under the Bankruptcy Code is the estate’s ability to avoid transfers made before the petition date that benefit certain creditors at the expense of others. These so-called avoidance actions are primarily governed by Sections 544, 547 and 548 of the Bankruptcy Code, which set forth the requirements for challenging prepetition transfers as preferential or fraudulent.

USA, Pennsylvania, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, US Congress, Supreme Court of the United States, United States bankruptcy court, Third Circuit, US District Court for Western District of Pennsylvania
US Supreme Court Addresses Safe Harbor Under Bankruptcy Code

Merit Management Group, LP v. FTI Consulting, Inc., No. 16-784 (2018)

USA, Insolvency & Restructuring, Litigation, Mayer Brown, Supreme Court of the United States
Court Approves Key Employee Incentive Plan, Finding it is Not a Disguised Retention Plan

Key Employee Retention Plans (KERPs) and Key Employee Incentive Plans (KEIPs) often are the subject of intense interest, either because a distressed company’s management is focused on developing such programs to retain valuable talent during a time of great uncertainty within its organization or because certain creditor constituencies or parties in interest take issue with the payments a debtor intends to make under the programs.

USA, Colorado, Employment & Labor, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, Secured creditor
Dueling Debtors: Missouri Bankruptcy Court says Debtor Can Reject Contract that Counterparty (Who is Also a Debtor) Sought to Assume

What happens when the counterparties on both sides of a contract are debtors in separate bankruptcy cases and their estates have contrary views about whether to reject or assume a contract?

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debtor, United States bankruptcy court
The Saga Continues: A brief update on the EFIH First Lien Make Whole Litigation

As avid blog readers know, we’ve posted extensively on make whole issues, including several articles covering the ongoing make whole litigations in the chapter 11 cases of Energy Future Holdings and its affiliated debtors, which can be found here, 

USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
What the future holds for make-whole claims in bankruptcy (Redux): examining the Energy Future Holdings EFIH second lien make-whole decision

Are you feeling a bit of déjà vu?  We certainly are.  As readers know, here at the Weil Bankruptcy Blog we’ve written extensively about make-wholes.  In two previous posts, What the Future Holds for Make-Whole Claims in Bankruptcy: Examining the Energy Future Holdings EFIH First Lien Make-Whole Decision – 

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy