Among the many financial innovations that came out of the COVID era, non-pro rata uptier transactions as a liability management exercise (“LMEs”) are among the more controversial. While lawsuits challenging non-pro rata uptier transactions are making their way through the courts, two important decisions were recently issued by the Court of Appeals for the Fifth Circuit and the New York Appellate Division.
On average, the Supreme Court hears a single bankruptcy case each term. But during the October 2022 term, the Supreme Court issued a remarkable four decisions in bankruptcy cases. These decisions, which are summarized below, address appellate issues relating to sale orders, the discharge of claims obtained by fraud, and sovereign immunity issues in two different contexts.
I. Section 363(m) of the Bankruptcy Code is not a jurisdictional provision that precludes appellate review of asset sale orders.
In the Matter of Global Cord Blood Corporation (FSD 108 of 2022, 31 March 2023), Kawaley J confirmed and clarified the legal test that applies when a third party seeks to be heard on a winding up petition. The case is a reminder that, generally speaking, only legal shareholders of a company are entitled to be joined to petition proceedings or present a contributory's petition.
The approach of the Cayman Grand Court to the terms and timing of the discharge of provisional liquidators taken inIn the Matter of Star International Drilling Ltd may provide a window into what is expected to be a similarly flexible approach to the appointment of restructuring officers.(1)
Introduction
The approach of the Cayman Grand Court to the terms and timing of the discharge of provisional liquidators of In the Matter of Star International Drilling Ltd (unreported, FSD 88 of 2021 ASCJ) may provide a window into what is expected to be a similarly flexible approach to the appointment of restructuring officers.
Star International Drilling Ltd's application to discharge its joint provisional liquidators
How should liquidators deal with the administrative burden of adjudicating thousands of low-value proof of debts in a liquidation estate, without exhausting the limited assets available in the liquidation estate? The Grand Court of the Cayman Islands recently approved a pragmatic solution.
How should liquidators deal with the administrative burden of adjudicating thousands of low-value proof of debts in a liquidation estate, without exhausting the limited assets available in the liquidation estate? The Grand Court recently sanctioned a pragmatic solution.
Introduction