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English Court of Appeal provides clarification regarding the regulation of dividend payments to shareholders

Introduction

In the recent case of Global Corporate Ltd v Hale , the Court of Appeal was asked to assess whether sums, described as “interim dividends”, paid to Mr. Hale (the “Respondent”) in his capacity as both a director and shareholder of Powerstation UK Limited (the “Company”), had been made in accordance with section 830 of the Companies Act 2006 (the “Act”) prior to the Company’s insolvency.

United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Mayer Brown, HM Revenue and Customs (UK), Companies Act 2006 (UK)
Fifth Circuit Holds Executory Contract Not Listed on Bankruptcy Schedules Is Automatically Rejected Upon Expiration of 60-Day Period in Chapter 7 and Not Capable of Being Sold

The Bottom Line

The Fifth Circuit recently held in RPD Holdings, L.L.C. v. Tech Pharmacy Services (In re Provider Meds, L.L.C.), No. 17-1113 (5th Cir. Oct. 29, 2018), that a patent license that was not specifically listed on the debtors’ bankruptcy schedules was automatically deemed rejected where it was not assumed within 60 days of the cases’ conversion from Chapter 11 to Chapter 7.

What Happened?

USA, Texas, Insolvency & Restructuring, Litigation, Patents, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Fifth Circuit
Third Circuit Affirms Bankruptcy Court Retention of Jurisdiction to Resolve Dispute Despite Arbitration Provision

The Bottom Line

The Third Circuit, in a nonprecedential opinion in FBI Wind Down, Inc. Liquidating Trust v. Heritage Home Group, LLC (In re FBI Wind Down Inc.), Case No. 17-2315 (3d Cir. July 27, 2018), recently held that the bankruptcy court retained jurisdiction over the parties’ dispute that centered on the definition of terms in a court-approved asset purchase agreement because the claims fell outside the scope of an arbitration provision in the agreement.

What Happened?

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP
Delaware Bankruptcy Court Dismisses Committee’s Complaint Challenging Portion of Credit Bid

The Bottom Line

USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Fourth Amendment, US District Court for District of Delaware
Supreme Court Is Asked To Leave Its Mark On Trademark Licensee’s Rights in Bankruptcy

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Trademarks, Kramer Levin Naftalis & Frankel LLP, First Circuit
Trademark Licensee Retains Rights Post-Rejection

The Bottom Line

USA, Connecticut, Insolvency & Restructuring, Litigation, Trademarks, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court
Courts Have the Flexibility to Select Valuation Date in Cram Down Scenario; Fifth Circuit Remands to Bankruptcy Court for Re-valuation Based On Improper Deduction of Waived Fees

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Fifth Circuit
First Circuit Holds Rejection of Trademark License Leaves Licensee With Only a Claim for Pre-petition Damages - No Right to Continued Use of Trademarks; Court Upholds Termination of Exclusive Distribution Rights

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Trademarks, Kramer Levin Naftalis & Frankel LLP, First Circuit
Eleventh Circuit Affirms Award of Attorneys’ Fees Incurred by Individuals for Stay Violation in Damages Action and on Appeal

The Bottom Line

Addressing an issue of first impression in the Eleventh Circuit, the Court in Mantiply v. Horne (In re Horne), 876 F.3d 1076 (11th Cir. 2017), recently held that section 362(k)(1) of the Bankruptcy Code authorizes payment of attorneys’ fees and costs incurred by debtors in successfully pursuing an action for damages resulting from an automatic stay violation and in defending the damages award on appeal.

What Happened?

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Eleventh Circuit
New Guidelines for Communication and Co-operation between Courts in Cross-Border Insolvency Matters

The High Court has formally adopted new guidelines approved by the fledgling Judicial Insolvency Network (“JIN”) designed to encourage and enhance communication between courts where parallel insolvency proceedings have been commenced in different jurisdictions (the “Guidelines”).

United Kingdom, Insolvency & Restructuring, Mayer Brown