Two recent cases out of the Third Circuit and the Southern District of New York highlight some of the developing formulas US courts are using when engaging with foreign debtors. In a case out of the Third Circuit, Vertivv. Wayne Burt, the court expanded on factors to be considered when deciding whether international comity requires the dismissal of US civil claims that impact foreign insolvency proceedings.

Recently, insolvency law was fundamentally amended in terms of reorganization procedures. The tax legislation was subsequently adapted to these new procedures, at the same time changing the content of some important tax rules.

The most important change is that a waiver of debt within the framework of a reorganization agreement becomes less interesting from a tax point of view. You will find out exactly how this works in this article.

Het insolventierecht onderging recent een grote wijziging op het gebied van de reorganisatieprocedures. De fiscale wetgeving werd vervolgens aan deze nieuwe procedures aangepast en daarbij werden tegelijk ook de inhoud van een aantal belangrijke fiscale regels gewijzigd.

De belangrijkste wijziging heeft als gevolg dat een schuldkwijtschelding binnen het kader van een reorganisatieakkoord fiscaal minder interessant wordt. Hoe dat precies zit, verneemt u in dit artikel.

Le droit de l'insolvabilité a récemment fait l'objet d'un changement majeur en ce qui concerne les procédures de réorganisation. La législation fiscale a ensuite été adaptée à ces nouvelles procédures, tout en modifiant le contenu de certaines règles fiscales importantes.

Le changement le plus important a pour conséquence qu'un apurement des dettes dans le cadre d'un accord de réorganisation devient moins intéressant du point de vue fiscal. Dans cet article, vous découvrirez comment cela fonctionne exactement.

When a majority of a company’s board approves a tender offer in good faith, can it still be avoided as an actually fraudulent transfer? Yes, says the Delaware Bankruptcy Court, holding that the fraudulent intent of a corporation’s CEO who was a board member and exercised control over the board can be imputed to the corporation, even if he was the sole actor with fraudulent intent.

Background

Recently, in In re Moon Group Inc., a bankruptcy court said no, but the district court, which has agreed to review the decision on an interlocutory appeal, seems far less sure.

Yes, says the Delaware Bankruptcy Court in the case of CII Parent, Inc., cementing the advice routinely given by bankruptcy counsel to borrowers in default. We always counsel borrower clients in default of the risk associated with lenders taking unilateral actions pre-filing, stripping debtors of valuable options and assets. Thus, we normally recommend to always obtain a forbearance and undertake the preparations required to file a bankruptcy petition immediately upon forbearance termination, although whether or not to file depends on variety of factors that should be considered.

The Second Circuit recently held that a non-party to an assumed executory contract is not entitled to a cure payment (although it may be so entitled if is a third-party beneficiary of the contract). The result would have seemed obvious to bankruptcy practitioners. So, what in the world made the party pursuing payment take this to the Second Circuit? Well, surprisingly, as the Second Circuit decision shows, the answer is not found in the plain text of the Bankruptcy Code. And while it was argued prior to the Supreme Court’s ruling in Bartenwerfer v. Buckley, No. 21-908, 598 U.S.

A mortgage loan repurchase facility (more casually referred to as a "repo") is a financing structure commonly utilized to finance mortgage loans. These facilities are utilized by both residential and commercial mortgage loan originators and aggregators to finance mortgage loans that they originate or acquire. The structure is favored by liquidity providers in the mortgage loan finance arena due to its preferential "safe harbor" treatment under the United States Bankruptcy Code (the "Bankruptcy Code"), as further described below.

Lenders often attempt to limit what a borrower can do outside the ordinary course of business by negotiating contractual protections. Some of these provisions are designed to make the borrowers bankruptcy remote by, for example, requiring the borrower’s Board to include an independent director whose consent is required for a bankruptcy filing. Others, as was the case we discuss here, however, go further by including contractual rights that limit a borrower’s ability to file for bankruptcy without the lender’s consent.