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Prepetition Claim or Postpetition Claim? The Timing of a Claim When A Debtor’s Prepetition Wrongful Actions Continue Postpetition

Executive Summary

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Supreme Court of the United States
Second Circuit Reverses Lower Courts, Preserves Madoff Trustee's Ability To Pursue $3.75 Billion of Stolen Customer Property

On Aug. 30, 2021, in a significant decision that paves the way for additional substantial recoveries for the victims of Bernard L. Madoff’s Ponzi scheme, the Second Circuit Court of Appeals preserved the ability of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), to pursue $3.75 billion of stolen customer property currently in the hands of participants in the global financial markets.

USA, Insolvency & Restructuring, Litigation, BakerHostetler, Second Circuit
Bankruptcy No Sanctuary Against Government Enforcement Actions: NRA’s Chapter 11 Case Dismissed as Bad Faith Filing

Executive Summary

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Corporate governance
Debt or Equity? SDNY Bankruptcy Court Says “Debt” in a Recent Case Involving Recharacterization of a Party’s Debt Claim as Equity

Overview

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debt, Coronavirus, United States bankruptcy court
Avoiding Foreign Transfers Based on Foreign Law Claims: Fairfield Sentry Cases Illustrate Broad Scope of Safe Harbor in Chapter 15

A series of related decisions issued by the United States Bankruptcy Court for the Southern District of New York in the ongoing Fairfield Sentry U.S. redeemer litigation — Fairfield Sentry II,1Fairfield Sentry III,2 and Fairfield Sentry IV3 — provide insight into, among other things, the interplay between the safe harbor provision of section 546(e)4 of the Bankruptcy Code (the “Safe Harbor”) and chapter 15.

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
Executory or Not Executory? That is the Question - NJ Bankruptcy Court Rules That Court-Ordered Specific Performance Renders a Contract Non-Executory

In a recent decision, the U.S. Bankruptcy Court for the District of New Jersey denied a debtor’s motion to reject a contract as executory under section 365 of the Bankruptcy Code, holding that the prepetition entry of a court order which required specific performance of a contract rendered the contract non-executory and, therefore, non-rejectable. In re Bennett Enters., Case No. 20-23761 (JNP), 2021 Bankr. LEXIS 625 (Bankr. D.N.J. 2021) (“Bennett Enterprises”).

Background

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
Transferring Personally Identifiable Information in Bankruptcy M&A - Part 3

With data privacy issues constantly in the news, what do businesses need to know about handling personal information when they’re considering bankruptcy, especially if some personal information – like customer records – may be a valuable asset?

USA, Corporate Finance/M&A, Insolvency & Restructuring, IT & Data Protection, Litigation, Weil Gotshal & Manges LLP, Due diligence, Personal data, Google, GDPR, California Consumer Privacy Act 2018 (USA)
No Time Runs against the King (IRS): The Golden Creditor Rule and its Discontents

Executive Summary

USA, Insolvency & Restructuring, Litigation, Tax, Weil Gotshal & Manges LLP, Internal Revenue Service (USA), Internal Revenue Code (USA), Supreme Court of the United States
Cross-Class Cram Down in UK Restructuring Plans: Virgin Active

Mr Justice Snowden’s recent judgment sanctioning the Virgin Active restructuring plans is significant for several reasons. Not only is it the first judgment to consider the cram down power of the 2006 Companies Act, but it is only the third instance that the cross-class cram down mechanism has been used. It is also the first time it has been used to cram down classes of dissenting landlords.

United Kingdom, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Companies Act 2006 (UK)
A Reminder That a 9019 Motion Is Not a Slam Dunk: Bankruptcy Court Denies 9019 Motion After Determining That Approving Certain Findings Required By Settlement Would Amount to Inappropriate Advisory Opinion

Introduction

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy