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2014: bankruptcy and restructuring annual review

2014 has been a tumultuous year, filled with tragedy and interstellar triumphs: Ebola; Sochi; Ukraine; Flight 370; ISIS; Flight 17; Comet 67P. Life in the corporate bankruptcy and restructuring world was considerably more sedate than in the world at large. Now five and six years removed, some of the mega cases of the 2008 and 2009 era linger on and continue to generate interesting legal developments. 

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
United States Court of Appeals for Second Circuit holds that section 546(e) safe harbor protects from avoidance transfers of fictitious profits in connection with Madoff Ponzi scheme

In In re Bernard L. Madoff Investment Securities LLC (“Madoff”),1 the United States Court of Appeals for the Second Circuit reaffirmed  its broad and literal interpretation of section 546(e) of the Bankruptcy Code, which provides a  safe harbor for transfers made in connection with a securities contract that might otherwise be  attacked as preferences or fraudulent transfers.

USA, Insolvency & Restructuring, Litigation, Mayer Brown, Security (finance), Safe harbor (law), Second Circuit
Momentive postscript – Bankruptcy Rule 3018: vote changing on Chapter 11 plans: you can’t have your cake and eat it, too

“Life is not about perfect information. Life is about choices, which is why you have elections.”

USA, New York, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
Interview with Bridget Marsh, Deputy General Counsel of the LSTA on Meridian Sunrise Village

We previously covered the Meridian Sunrise Village case on the Bankruptcy Blog here.

USA, Washington, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, General counsel
Momentous decision in Momentive Performance Materials: cramdown of secured creditors – Part II

On August 26, 2014, Judge Drain concluded the confirmation hearing in Momentive Performance Materials and issued several bench rulings on cramdown interest rates, the availability of a make-whole premium, third party releases, and the extent of the subordination of senior subordinated noteholders.

USA, New York, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Title 11 of the US Code
Momentous decision in Momentive Performance Materials: cramdown of secured creditors – Part I

On August 26, 2014, Judge Drain, of the Bankruptcy Court for the Southern District of New York, concluded the confirmation hearing in Momentive Performance Materials and issued several bench rulings on cramdown interest rates, the availability of a make-whole premium, third party releases, and the extent of the subordination of senior subordinated noteholders. This four-part Bankruptcy Blog series will examine Judge Drain’s rulings in detail, with Part I of this series providing you with a primer on cramdown in the secured creditor context.

USA, New York, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Unsecured debt, Secured creditor, United States bankruptcy court
New York Bankruptcy Court holds remote special purpose subsidiaries eligible as debtors, denies dismissal of SPE Chapter 11 filings by General Growth Properties

On August 11, 2009, the US Bankruptcy Court for the Southern District of New York denied five motions to dismiss bankruptcy cases filed by certain bankruptcy remote, special purpose subsidiaries (SPEs) of General Growth Properties, Inc. (GGP). The motions were filed by or on behalf of secured lenders to the SPEs (Movants) who argued that the bankruptcy filings were inconsistent with the bankruptcy remote structures that they had negotiated with GGP.

USA, New York, Insolvency & Restructuring, Litigation, Mayer Brown, Public company, Bankruptcy, Shareholder, Debtor, Real estate investment trust, Good faith, Bad faith, Refinancing, Subsidiary, Commercial mortgage, Title 11 of the US Code, Delaware General Corporation Law, United States bankruptcy court