Use, sale or lease of estate property outside ordinary course
Special rules for use of cash collateral
Jevic and distributions inconsistent with the Bankruptcy Code's priority scheme
Claar Cellars
The Bankruptcy Court's Ruling
The ability of a bankruptcy trustee or a chapter 11 debtor-in-possession ("DIP") to use "cash collateral" during the course of a bankruptcy case may be vital to the debtor's prospects for a successful reorganization. However, because of the unique nature of cash collateral, the Bankruptcy Code sets forth special rules that apply to the nonconsensual use of such collateral to protect the interests of the secured creditor involved. The U.S. Bankruptcy Court for the Eastern District of Washington examined these requirements in In re Claar Cellars, LLC, 2020 WL 1238924 (Bankr. E.D.
This significant recent decision of the Supreme Court of Canada confirms (i) that a CCAA supervising judge enjoys broad discretion and the necessary jurisdiction to prevent a creditor from voting on a plan of arrangement when the creditor is acting for an improper purpose, and (ii) that litigation funding is not intrinsically illegal and that a litigation funding agreement can be approved by the Court as an interim financing in insolvency.
Cette importante décision prononcée dernièrement par la Cour suprême du Canada confirme : (i) que le juge chargé d’appliquer la LACC possède un vaste pouvoir discrétionnaire et la compétence nécessaire pour empêcher un créancier de voter sur un plan d’arrangement s’il agit dans un but illégitime, (ii) que le financement de litiges n’est pas intrinsèquement illégal et qu’un accord de financement de litige peut être approuvé par la Cour à titre de financement temporaire en situation d’insolvabilité.
Coronavirus Aid, Relief, and Economic Security (CARES) Act
This significant recent decision of the Supreme Court of Canada confirms (i) that a CCAA supervising judge enjoys broad discretion and the necessary jurisdiction to prevent a creditor from voting on a plan of arrangement when the creditor is acting for an improper purpose, and (ii) that litigation funding is not intrinsically illegal and that a litigation funding agreement can be approved by the Court as an interim financing in insolvency.
The U.S. Supreme Court recently handed down three rulings potentially impacting bankruptcy cases.
Nunc Pro TuncRelief
In Roman Catholic Archdiocese of San Juan v. Acevedo Feliciano, No. 18-921, 2020 WL 871715 (U.S. Feb. 24, 2020), the Court circumscribed the use of nunc pro tunc ("now for then") orders that make relief ordered by a court apply retroactively to an earlier point in time.
A company or group's financial distress causes significant turmoil for its owners, directors, managers, employees and often its suppliers and other creditors. For directors in particular, there are significant responsibilities and potential personal liabilities associated with the management of a company where its business is in financial distress.
In response to the COVID-19 outbreak, the British Columbia Supreme Court (the “Court”) has suspended regular operations at all of its locations from March 19th, 2020 to May 29th, 2020 (the “Suspension Period”).[1] In an effort to balance the seriousness of the situation with the principles of open courts and timely access to justice, the Court continues to hear certain “urgen
In Short
The Situation: The COVID-19 pandemic is having an impact on businesses across various sectors in Italy.
The Action: Further to the Law Decree No. 18 of March 17, 2020 (the "Cura Italia Decree"), the Italian Government recently enacted the Law Decree No. 23 of April 8, 2020 (the "Liquidity Decree"), implementing a number of additional measures aimed at mitigating the adverse economic impact of COVID-19.