On April 19, 2021, the U.S. Supreme Court declined to hear the appeal of a landmark 2019 decision issued by the U.S. Court of Appeals for the Second Circuit regarding the applicability of the Bankruptcy Code's safe harbor for certain securities, commodity, or forward contract payments to prevent the avoidance in bankruptcy of $8.3 billion in payments made to the shareholders of Tribune Co. as part of its 2007 leveraged buyout ("LBO").
Expected for almost two months, the law that partially and temporarily modifies the insolvency legislation has been adopted on 21 March 2021 at last.
This is nearly two months after the general moratorium on bankruptcies, that was in force since 28 October 2020, expired.
1. Why this legislative intervention was necessary
The main purpose of this measure is to adapt the existing restructuring toolbox to the needs of Belgian companies facing major financial difficulties due to the corona crisis.
On l’attendait depuis bientôt deux mois, voire plus : le 21 mars 2021, une loi réformant partiellement et temporairement le droit de l’insolvabilité a été votée.
Cette loi intervient presque deux mois après la fin du moratoire général sur les faillites en place depuis le 28 octobre 2020 et qui prenait fin le 31 janvier dernier.
1. Pourquoi cette intervention législative était nécessaire
Hervorming van de insolventiewetgeving
Meer dan twee maanden hebben we er op moeten wachten, maar op 21 maart 2021 kwam eindelijk de goedkeuring van de wet die de insolventiewetgeving gedeeltelijk en tijdelijk hervormt.
Dit was bijna twee maanden nadat het algemene moratorium op faillissementen dat sinds 28 oktober 2020 van kracht is, afliep.
1. Waarom deze wetgevende tussenkomst noodzakelijk was
Réforme de droit de l'insolvabilité
On l’attendait depuis bientôt deux mois, voire plus : le 21 mars 2021, une loi réformant partiellement et temporairement le droit de l’insolvabilité a été votée.
Cette loi intervient presque deux mois après la fin du moratoire général sur les faillites en place depuis le 28 octobre 2020 et qui prenait fin le 31 janvier dernier.
1. Pourquoi cette intervention législative était nécessaire
Introduction
Good-Faith Defense to Avoidance of Fraudulent Transfers
Stockbroker Liquidations Under SIPA
Madoff
The Second Circuit's Ruling
Outlook
In In re Nuverra Environmental Solutions, Inc., 834 Fed. App'x 729 (3d Cir. 2021), the U.S. Court of Appeals for the Third Circuit handed down a long-awaited ruling that could have addressed, but ultimately did not address, the validity of "gifting" chapter 11 plans under which a senior creditor class gives a portion of its statutorily entitled recovery to one or more junior classes as a means of achieving consensual confirmation.
Section 365(h) of the Bankruptcy Code provides special protection for tenants if a trustee or chapter 11 debtor-in-possession ("DIP") rejects an unexpired lease under which the debtor was the lessor by giving the tenant the option of retaining possession of the leased premises. Although the provision clearly describes what rights a tenant has if it makes such an election, it does not unequivocally address the extent of the electing tenant's obligations under the rejected lease or any related agreements. The U.S.
There is longstanding controversy concerning the validity of release and exculpation provisions in non-asbestos trust chapter 11 plans that limit the potential exposure of various parties involved in the process of negotiating, implementing and funding the plan. The U.S. Bankruptcy Court for the Eastern District of Washington recently contributed to the extensive body of case law addressing these issues in In re Astria Health, 623 B.R. 793 (Bankr. E.D. Wash. 2021).