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Ninth Circuit Finally Abandons Entz-White: Default-Rate Interest Required to Cure and Reinstate Secured Debt Under Chapter 11 Plan

In 1994, Congress amended the Bankruptcy Code to add section 1123(d), which provides that, if a chapter 11 plan proposes to "cure" a default under a contract, the cure amount must be determined in accordance with the underlying agreement and applicable nonbankruptcy law. Since then, a substantial majority of courts, including the U.S. Court of Appeals for the Eleventh Circuit, have held that such a cure amount must include any default-rate interest required under either the contract or applicable nonbankruptcy law.

USA, Banking, Insolvency & Restructuring, Litigation, Jones Day, Default (finance), Ninth Circuit, Eleventh Circuit
Ninth Circuit Abandons Entz-White: Default-Rate Interest Required to Cure and Reinstate Secured Debt Under Chapter 11 Plan

In 1994, Congress amended the Bankruptcy Code to add section 1123(d), which provides that, if a chapter 11 plan proposes to "cure" a default under a contract, the cure amount must be determined in accordance with the underlying agreement and applicable nonbankruptcy law. Since then, a substantial majority of courts, including the U.S. Court of Appeals for the Eleventh Circuit, have held that such a cure amount must include any default-rate interest required under either the contract or applicable nonbankruptcy law. See, e.g., JPMCC 2006-LDP7 Miami Beach Lodging, LLC v.

USA, Banking, Insolvency & Restructuring, Litigation, Jones Day, Ninth Circuit
Clerys Report - Key Proposals on Laws Protecting Employees

In early 2016, the Government commissioned an examination into laws protecting employees following the overnight closure of the historic Clerys department store in Dublin in June 2015, with the immediate loss of 460 jobs. We review the recently published report which sets out six key proposals for legislative reform.

Ireland, Employment & Labor, Insolvency & Restructuring, Mason Hayes & Curran LLP, Liquidation
Eleventh Circuit weighs in on section 1123(d): reinstatement of defaulted loan agreement under chapter 11 plan requires payment of default-rate interest

In 1994, Congress amended the Bankruptcy Code to, among other things, add section 1123(d), which provides that, if a chapter 11 plan proposes to “cure” a default under a contract, the cure amount must be determined in accordance with the underlying agreement and applicable nonbankruptcy law. Since then, a majority of courts have held that such a cure amount must include any default-rate interest required under either the contract or applicable nonbankruptcy law. A ruling recently handed down by the U.S. Court of Appeals for the Eleventh Circuit endorses this view.

USA, Insolvency & Restructuring, Litigation, Jones Day, Interest, Default (finance), Eleventh Circuit
Employment issues on insolvency

In the current economic climate, many companies are facing the prospect of their business becoming insolvent.

From an employer’s, and indeed an insolvency practitioner’s perspective, the rights and obligations owing to employees of which they need to be aware depend on the nature of the insolvency and the terms of the contract of employment.

Ireland, Employment & Labor, Insolvency & Restructuring, Mason Hayes & Curran LLP, Contractual term, Wage, Employment contract, Sick leave, Liquidation, Companies Act 2006 (UK)