In deciding whether to afford administrative priority to claims arising from goods shipped shortly before a debtor’s bankruptcy filing, the Third Circuit, in In re World Imports Ltd., 862 F.3d 338 (3d Cir. July 10, 2017), interpreted the term “received” under section 503(b)(9) to mean “physical possession.” In effect, the Third Circuit’s decision provides additional protection to trade vendors that conduct business with distressed debtors.
On September 22, 2017, the First Circuit issued a decision[1] holding that the Official Committee of Unsecured Creditors (the “UCC”) appointed in the Commonwealth of Puerto Rico’s Title III debt adjustment case[2] (the “Title III Case”) has an unrestricted right to i
The Bankruptcy Court for the District of Delaware recently issued a decision that will undoubtedly influence strategies in bankruptcy cases involving plugging and abandonment liabilities. The court’s ruling in Venoco, LLC v. City of Beverly Hills illuminates the Bankruptcy Code’s rehabilitative purposes by explaining that financial harm, without more, is not sufficient to enjoin a debtor’s actions.
What Happened
Unlike the parenting technique that requires a misbehaving child to sit in a designated area for a set amount of time, Gymboree Corporation, the well-known San Francisco-based company that operates specialty retail stores of children’s apparel, will serve its time-out before Judge Keith L. Phillips in the US Bankruptcy Court for the Eastern District of Virginia.
In this Update
- on April 24, 2017, the Alberta Court of Appeal affirmed the Alberta Court of Queen’s Bench’s decision in Redwater Energy Corporation (Re), 2016 ABQB 278 (Redwater)
- reasons for the Redwater decision
- the issues in Redwater raise various important policy concerns regarding land owners, the public at large and the oil and gas industry
- background and significant implications of Redwater
Introduction
In Caetano v Quality Meat Packers, 2017 ONSC 1199, Justice Belobaba of the Ontario Superior Court recently had opportunity to consider whether two representative proceedings commenced on behalf of two separate groups of employees against an insolvent employer ought to be struck because, despite the actions having been commenced within the applicable two year limitation period, the plaintiffs in those two actions had failed to obtain the necessary representation orders within the two year period.
The Bankruptcy Court for the District of Delaware recently held in the bankruptcy proceedings of Nortel Networks Inc., et al. (“Nortel”), Case No. 09-10138 (KG), that it would not second guess the work of an indenture trustee and its counsel on matters related to the trustee (i) in its capacity as indenture trustee on behalf of noteholders; (ii) in its capacity as a member of a creditors’ committee; and (iii) in defending its fees.
On appeal from a decision in the In re Energy Future Holdings Corp. bankruptcy case, the US Court of Appeals for the Third Circuit recently held that contractual make-whole premium provisions are enforceable where the obligation to repay bond debt is accelerated by a bankruptcy filing.
In Essar Steel Algoma Inc. (Re), Justice David Brown of the Ontario Court of Appeal held that the ambit of orders “made under” the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 (the “CCAA”), and thus requiring leave to be appealed, is broad. Though concluding that the appellant in this case required leave to appeal, he nonetheless ordered the leave motion be expedited.
In 2009, General Motors (“Old GM”) commenced a chapter 11 case and sold the bulk of its business and assets to a new entity (“New GM”) “free and clear” of liabilities against New GM. Notwithstanding the “free and clear” language of the 2009 sale order (the “Sale Order”), a Second Circuit panel recently held that plaintiffs could assert claims against New GM over faulty ignition switches in cars manufactured by Old GM and recalled in early 2014.