Firm Articles | Global Insolvency

30 December 2013

Recent Developments

Global, Arbitration & ADR, Capital Markets, Insolvency & Restructuring, Litigation, Jones Day, Shareholder, Joint-stock company, Third Circuit

First impressions: commercial leases may be assumed within 210-day deadline and assigned later

21 November 2013

Commercial landlords hailed as a significant victory the enactment in 2005 of a 210-day “drop dead” period after which a lease of nonresidential real property with respect to which the debtor is the lessee is deemed rejected unless, prior to the expiration of the period, a chapter 11 debtor in possession (“DIP”) or bankruptcy trustee assumes or rejects the lease.

USA, Insolvency & Restructuring, Litigation, Real Estate, Jones Day, Debtor, Landlord

Safe harbor redux: the Second Circuit revisits the Bankruptcy Code’s protection against avoidance of securities contract payments

31 July 2013

“Safe harbors” in the Bankruptcy Code designed to minimize “systemic risk”—disruption in the securities and commodities markets that could otherwise be caused by a counterparty’s bankruptcy filing—have been the focus of a considerable amount of judicial scrutiny in recent years. The latest contribution to this growing body of sometimes controversial jurisprudence was recently handed down by the U.S. Court of Appeals for the Second Circuit.

USA, Capital Markets, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Security (finance), Safe harbor (law), Debtor in possession, Title 11 of the US Code, Second Circuit

Germany—in October 2012, the German Federal Labour Court (Bundesarbeitsgericht) rejected an attempt by the acquirer of an insolvent company to circumvent European transfer of undertaking rules.

09 July 2013

The acquirer attempted to contractually transfer employees to a so-called "transitional company" (Transfergesellschaft) for a few hours only. The employees involved had previously signed five different employment offers presented by the acquirer, some of them limited, some unlimited in time. The acquirer subsequently accepted one of the offers, which was a fixed term contract.

Germany, Employment & Labor, Insolvency & Restructuring, Litigation, Jones Day, Federal Labour Court of Germany

Euroresource--deals and debt

28 June 2013

Recent Developments

Argentina, Germany, Macau, United Kingdom, USA, Insolvency & Restructuring, Litigation, Tax, Jones Day, Debtor, Debt, HM Treasury (UK)

Driving the wedge deeper: Fifth and Ninth Circuits unite in refusing to condemn “artificial impairment” in cramdown chapter 11 plans

01 June 2013

One of the prerequisites to confirmation of a cramdown (nonconsensual) chapter 11 plan is that at least one “impaired” class of creditors must vote in favor of the plan. This requirement reflects the basic principle that a plan may not be imposed on a dissident body of stakeholders of which no class has given approval. However, it is sometimes an invitation to creative machinations designed to muster the requisite votes for confirmation of the plan.

USA, Insolvency & Restructuring, Litigation, Jones Day, Shareholder, Ninth Circuit, Fifth Circuit

Euroresource--deals and debt

29 May 2013

Europe, the U.S. and Canada—On 7 May 2013, the US Bankruptcy Court for the District of Delaware denied a motion by European creditors of Nortel Networks Corp. ("Nortel") to certify a direct appeal to the U.S. Court of Appeals for the Third Circuit of the bankruptcy court's 3 April 2013 ruling (Inre Nortel Networks, Inc., Case No. 09-10138 (KG), 2013 BL 92666 (Bankr. D. Del. Apr.