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Credit bidding after Philadelphia Newspapers: dissent 1, majority 0

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.

USA, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Credit (finance), Debtor, Dissenting opinion, Majority opinion, Secured loan, United States bankruptcy court, Third Circuit, Seventh Circuit, US District Court for Northern District of Illinois
No abuse of discretion in refusing to reopen bankruptcy proceedings after four years

REDMOND v. FIFTH THIRD BANK (October 20, 2010)

USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Debt, Mortgage loan, Foreclosure, Standard of review, Remand (court procedure), Default (finance), Prejudice, United States bankruptcy court
Margin violation is not an affirmative defense to an action on a note

COSTELLO v. GRUNDON (October 18, 2010)

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Share (finance), Bankruptcy, Unsecured debt, Breach of contract, Fraud, Discovery, Vacated judgment, Misrepresentation, Prima facie, Securities Act 1933 (USA), Trustee
It might be thought that the statutory prohibition of litigating against a company in administration (without permission of the court) has worldwide effect; but does it?

Background

Administration

Administration is a procedure by which a company can be reorganised and its assets realised whilst being protected by a moratorium from actions brought by creditors (explained below).  

Objectives

A company can be put into administration if the objectives of administration are likely to be achieved. These are set out in the Insolvency Act 1986 (the “Act”)4 as:  

Global, United Kingdom, Insolvency & Restructuring, Litigation, Wedlake Bell, Unsecured debt, Injunction, Landlord, Debt, Liquidation, Moratorium, Capital punishment, Unsecured creditor, Insolvency Act 1986 (UK)
Bankruptcy court acted within discretion in concluding that trust did not meet the "adequate assurance of future performance" test

IN RE: RESOURCE TECHNOLOGY CORP. (October 1, 2010)

USA, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Natural gas, Board of directors, Legal burden of proof, Electricity, Contempt of court, Landfill, United States bankruptcy court
Second Circuit stays DBSD North America plan

The chapter 11 case of DBSD North America, Inc. (“DBSD”), f/k/a ICO North America, has been marked by aggressive tactics and extreme positions from its commencement. DBSD, a non-operating satellite communications company, and its second lien noteholders made clear their intent to cram down a plan of reorganization (the “Plan”) on DBSD’s first lien lenders.

USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Debtor, Collateral (finance), Security (finance), Interest, Market liquidity, Debt, Maturity (finance), Good faith, Secured creditor, Secured loan, Second Circuit
Withdrawal liability payments are not deferred pending arbitration when accelerated due to insolvency

CENTRAL STATES SOUTHEAST AND SOUTHWEST AREAS PENSION FUND v. O'NEILL BROS. TRANSFER & STORAGE (August 31, 2010)

USA, Arbitration & ADR, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Employee Retirement Income Security Act 1974 (USA), Liability (financial accounting), Liquidation, Default (finance), Promulgation, Pension Benefit Guaranty Corporation
Proof of falsity and materiality are not required at class certification stage

SCHLEICHER v. WENDT (August 20, 2010)

Conseco was a large financial services company traded on the New York Stock Exchange. It filed for bankruptcy in 2002 and successfully reorganized. This securities-fraud claim was filed against Conseco managers who are alleged to have made false statements prior to the bankruptcy. Then-District Judge Hamilton (S.D. Ind.) certified a class. Defendants appeal.

USA, Capital Markets, Insolvency & Restructuring, Litigation, White Collar Crime, Kelley Drye & Warren LLP, Bankruptcy, Private equity, Security (finance), Fraud, Class action, Causality, US Congress, New York Stock Exchange, Fifth Circuit
Bankruptcy court's interpretation of reorganization plan it confirmed receives deferential treatment

IN RE: AIRADIGM COMMUNICATIONS, INC. (August 4, 2010)

USA, Insolvency & Restructuring, Litigation, Telecoms, Kelley Drye & Warren LLP, Bankruptcy, Collateral (finance), Standard of review, Estoppel, Federal Communications Commission (USA), Ericsson, Supreme Court of the United States, United States bankruptcy court
Pro-rata calculation of pre-petition portion of tax refund was reasonable

IN RE: MEYERS (August 2, 2010)

USA, Insolvency & Restructuring, Litigation, Tax, Kelley Drye & Warren LLP, Bankruptcy, Debtor, Debt, Liability (financial accounting), Legal burden of proof, Prima facie, Pro rata, Trustee, United States bankruptcy court