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Supreme Court: Trademark Licenses Survive Bankruptcy Rejection

In an 8-1 decision, the Supreme Court settled a long-standing circuit split regarding the impact of bankruptcy filings on trademark licenses. Until May 20th, brand owners in some jurisdictions could use bankruptcy protections to terminate the rights of third parties to use its licensed trademarks. Now, it is clear that a bankrupt licensor cannot rescind trademark license rights. Licensees can continue to do whatever their trademark licenses authorize, even if the licensor has filed for bankruptcy.

USA, Insolvency & Restructuring, Litigation, Trademarks, Bracewell LLP
Second Circuit Confirms Madoff Trustee’s Ability to Recover Foreign Transfers

The Bottom Line

USA, New York, Banking, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Trustee, Second Circuit, United States bankruptcy court
SDNY Bankruptcy Court Finds Bar Date Applies to Pension Fund’s Withdrawal Liability Claim Before Withdrawal Occurs

The Bottom Line

The U.S. Bankruptcy Court for the Southern District of New York entered a decision confirming the applicability of the Court’s bar date order as it relates to a pension fund’s claim for withdrawal liability filed after the bar date, despite the fact that the withdrawal occurred after the deadline for filing proofs of claim.

What Happened?

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Mutual fund, Investment funds, US District Court for the Southern District of New York
Southern District of New York Dismisses Securities Law Claims on Grounds of International Comity; No Chapter 15 Proceeding Required

The Bottom Line

Canada, USA, New York, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Companies' Creditors Arrangement Act 1933 (Canada), US District Court for the Southern District of New York
Fifth Circuit Analyzes Creditor’s Impairment, Entitlements to Contractual Make-Whole and Post-Petition Interest Under Solvent-Debtor Chapter 11 Plan

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court, Fifth Circuit
Bankruptcy Court for the Southern District of New York Holds That Bankruptcy Court Retains Jurisdiction Over Fraudulent Transfer Action Even If Defendant-Creditor Withdraws Proof of Claim

The Bottom Line

USA, New York, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court
Fifth Circuit Disallows Make-Whole Payment in Bankruptcy

On Jan. 19, 2019, the U.S. Court of Appeals for the Fifth Circuit vacated a bankruptcy court decision awarding Ultra Petroleum Corp. noteholders $201 million in make-whole payments and $186 million in post-petition interest. Under the note agreement, upon a bankruptcy filing, the issuer is obligated for a make-whole amount equal to the discounted value of the remaining scheduled payments (including principal and interest that would be due after prepayment) less the principal amount of the notes.

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Fifth Circuit
Alberta Don’t You Treat Me Unkind - Gonna Change My Way of Thinking

In 2017, the Alberta Court of Appeal upheld the lower court’s decision that the BIA prevailed over a conflicting provision in the provincial regulations promulgated by the Alberta Energy Regulator (AER).

Canada, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Bracewell LLP, Alberta Energy Regulator, Bankruptcy and Insolvency Act 1985 (Canada), Supreme Court of Canada, Court of Appeal of Alberta
Fifth Circuit Holds That Creditor Lacks Constitutional Standing to Appeal

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Shipping & Transport, Kramer Levin Naftalis & Frankel LLP, ING Group, Fifth Circuit
The Fifth Circuit Holds Bankruptcy Code Can Impair Claims and Make-Whole Provision May Not Be Enforceable

On January 17, 2019, the Fifth Circuit held that a creditor is not impaired for the purpose of voting on a plan if it is the Bankruptcy Code (as opposed to plan treatment) that impairs a creditor’s claim. The court further held that a make-whole premium is a claim for unmatured interest which is not an allowable claim under Bankruptcy Code, absent application of the “solvent-debtor” exception which may or not apply—the issue was remanded to the bankruptcy court for decision.

USA, Insolvency & Restructuring, Litigation, Bracewell LLP, United States bankruptcy court, Fifth Circuit