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Village Green I, GP v. Federal National Mortgage Association (In re Village Green I, GP)

(6th Cir. Jan. 27, 2016)

The Sixth Circuit affirms the district court’s finding that the Chapter 11 plan was proposed in bad faith. The plan proposed to pay small claims in full but over a 60-day period. This class of claims was technically impaired due to the delayed payment and it voted to accept the plan. The principle secured lender appealed. The Court finds that the plan was not proposed in good faith, as required by 11 U.S.C. § 1129(a)(3), because it was designed to circumvent  § 1129(a)(10)’s requirement for an accepting impaired class of claims. Opinion below.

USA, Banking, Insolvency & Restructuring, Litigation, Stoll Keenon Ogden PLLC, Sixth Circuit
Protecting trademark licensee’s right to continued use of trademark when licensor declares bankruptcy

In the case of In re: Exide Technologies, decided on June 1, 2010, the US Court of Appeals for the Third Circuit reversed two lower court decisions and held that a 1991 agreement between Exide Technologies and EnerSys Delaware Inc., which included a license to EnerSys for use of the “EXIDE” trademark, is not an executory contract that can be rejected by Exide in bankruptcy proceedings.

USA, Insolvency & Restructuring, Litigation, Trademarks, Mayer Brown, Bankruptcy, Debtor, Breach of contract, Debtor in possession, US Code, United States bankruptcy court, Third Circuit