On August 26, 2014, the Honorable Robert D. Drain, Bankruptcy Judge of the United States Bankruptcy Court for the Southern District of New York, issued several bench rulings (the “Bench Rulings”) in connection with confirmation of a plan of reorganization in the chapter 11 cases of MPM Silicones, LLC, et al.

On June 27, 2014, in National Heritage Foundation, Inc. v. Highbourne Foundation, 1 the United States  Court of Appeals for the Fourth Circuit, agreeing with decisions by the Bankruptcy Court for the Eastern  District of Virginia and the District Court for the Eastern District of Virginia, which were issued upon  remand from a prior appeal, held that the third-party non-debtor release provision in the chapter 11 plan  of reorganization of National Heritage Foundation, Inc.  was invalid.

Substantial Contribution to the Case

On June 6, 2014, in Lewis Brothers Bakeries Incorporated and Chicago Baking Company v.

Background

Yesterday the UK Financial Conduct Authority (the “FCA”) published  the final text of some significant changes to the Listing Rules.1 The changes, which will come into force on 16 May 2014, are intended to enhance the effectiveness of the UK listing regime, particularly in situations where the rights of minority shareholders are at risk of being abused, and to address concerns in relation to the potential influence of 

controlling shareholders on UK listed companies, while ensuring that London remains an attractive listing 

venue.

Assignees of Loan Only Entitled to One Collective Vote on Plan

On January 17, 2014 the Bankruptcy Court for the District of Delaware issued a ruling in Fisker Automotive Holdings, Inc., et. al., Case No. 13-13087 (KG), which highlights potential risks to both secured creditors and purchasers of claims in bankruptcy section 363 sales. The facts in Fisker are straightforward. Fisker was founded in 2007 to make high-end electric cars and was financed principally with federal and state government loans secured by some, but not all, of Fisker’s assets.

In In re KB Toys,¹ a recent decision by the Third Circuit Court of Appeals, the Court held that a claim that is disallowable under § 502(d)² if held by the original claimant is also disallowable in the hands of a purchaser or subsequent transferee. In other words, if a creditor sells or assigns its claim to a claims trader and the creditor later becomes liable on a preference or fraudulent transfer,³ the claim may be disallowed in the hands of the claims trader if the creditor fails to pay the amount it owes to the estate.

A new Statement of Insolvency Practice 16 ("SIP 16") relating to pre-packaged sales in administration ("Pre-Packs") came into force on 1 November 2013.