FOLLETT HIGHER EDUCATION GROUP v. BERMAN (January 21, 2011)
Judge Burton Lifland, the bankruptcy judge overseeing the liquidation proceedings of Bernard L.
Yes, but only if the government declines to intervene in the action. United States ex rel. Kolbeck v. Point Blank Solutions, Inc., 1:08-cv-1187 (E.D. Va.), recently addressed this issue.
Can a debtor seeking debtor-in-possession (“DIP”) financing under Section 364 of the Bankruptcy Code grant a lender a lien on a leasehold interest in the face of an express anti-hypothecation provision in the underlying lease?
The Second Circuit Court of Appeals issued a summary order this week upholding the aggressively unfavorable treatment of a senior secured creditor under the reorganization plan (the “Plan”) of DBSD North America, f/k/a ICO North America (“DBSD”).
Under Delaware law, do creditors of an insolvent limited liability company have the same standing as creditors of insolvent corporations to pursue derivative claims against directors on behalf of the LLC? Most commentators, and some courts, have assumed that the answer was “yes.” However, the Delaware Court of Chancery in CML V LLC v. Bax, No. 5373-VCL, 2010 WL 4517795 (Del. Ch. Nov. 3, 2010), determined that the plain language of the Delaware Limited Liability Company Act (the LLC Act) denies derivative standing to such creditors.
Section 330 of the Bankruptcy Code provides a statutory framework for compensation of professionals who are paid from the bankruptcy estate. Compensation awarded under section 330 is afforded administrative expense status under section 503(b)(2) and given second priority in the distribution of an estate pursuant to section 507(a)(2) of the Bankruptcy Code.
Some legal commentators have lamented the extent to which lenders have been able to use debtor in possession (“DIP”) financing arrangements to gain control over an entire Chapter 11 case.
Bankruptcy lawyers who are regularly involved in distressed m&a deals have been wondering for the past few months about the potential fallout from Philadelphia Newspapers.
REDMOND v. FIFTH THIRD BANK (October 20, 2010)