Will Congress Finally Act?

This is the fourth in a series of Alerts regarding the proposals made by the American Bankruptcy Institute Commission to Reform Chapter 11 Business Bankruptcies. We discuss here the Commission’s efforts to require that debtor’s management act in a more transparent fashion. For copies of this or any prior articles about the Commission, please contact any BakerHostetler bankruptcy attorney.

This is the fourth in a series of Alerts regarding the proposals made by the American Bankruptcy Institute Commission to Reform Chapter 11 Business Bankruptcies. We discuss here the Commission’s efforts to require that debtor’s management act in a more transparent fashion. For copies of this or any prior articles about the Commission, please contact any BakerHostetler bankruptcy attorney.

Will Congress Finally Act?

This is the third in a series of Alerts regarding the proposals made by the American Bankruptcy Institute’s Commission to Reform Chapter 11 Business Bankruptcies. It covers the Commission’s recommendations about the fiduciary obligations of a Chapter 11 debtor’s directors and officers and proposed changes to typical defenses asserted to state causes of action. For copies of this or any prior articles about the Commission, please contact any BakerHostetler bankruptcy attorney.

Director and Officer Fiduciary Duties in Chapter 11

This is the second in a series of Alerts regarding the proposals made by the American Bankruptcy Institute’s Select Commission to Reform Chapter 11 Business Bankruptcies. It covers the Commission’s recommendations about the paying of “critical vendors” and other unsecured creditors at the very beginning of a bankruptcy case. The Commission’s recommendations are set forth below. For copies of this Alert, or the prior article about the Commission’s recommendations regarding secured lenders, please contact any BakerHostetler bankruptcy attorney.

Congress rarely accomplishes anything these days, but the need to reform Chapter 11 of the Bankruptcy Code seems to have “crossed over the aisle.” When the Bankruptcy Code was enacted in 1978, America boasted the world’s dominant manufacturing economy. Corporate debt was mostly unsecured trade debt. Secured loans provided tangible asset financing for property, plant, and equipment.

In the context of a tenant’s bankruptcy, Justice Romaine of the Alberta Queens Bench recently characterized a deposit provided under a lease as a security interest, as opposed to pre-paid rent, forcing an unsecured landlord to remit the money to a trustee in bankruptcy.

On March 16, 2015, the Spanish subsidiary of Banca Privada d’Andorra, Banco de Madrid, sought bankruptcy protection in the midst of a run on the bank by depositors. The run and bankruptcy were the result of FinCEN’s March 10, 2015, announcement that it would bar U.S. banks from providing correspondent banking services to Banca Privada d’Andorra or any bank that processes transactions for Banca Privada d’Andorra.

Un avis de cotisation de l’Agence du revenu du Canada (l’ARC) constitue une mesure de recouvrement prouvable au sens de l’article 69.3 de la Loi sur la faillite et l’insolvabilité (LFI). Lorsque l’ARC est un créancier non garanti, la réclamation est sujette à la suspension des procédures de l’article 69.3 LFI, et pour lever cette suspension, l’ARC doit se présenter devant le tribunal, tel que prévu par l’article 69.4 LFI.

Antérieurement à sa faillite, la débitrice agissait à titre d’entreprise fournissant des services de « warehousing, receiving and shipping (pick and pack) ».

Après la faillite de l’entreprise survenue le 9 janvier 2014, l’un de ses anciens clients a réclamé du syndic la remise de ses inventaires.

Un torréfacteur manufacturier de café veut pétitionner en faillite son distributeur dans la région de l’Estrie. Cette procédure de faillite est assortie d’une demande pour ordonnance de sauvegarde afin que le tribunal prononce l’annulation de clauses de non-concurrence et de non-sollicitation.