In December 2010, the Trustee obtained a $5 billion settlement for BLMIS customers with allowed claims.  Plaintiffs in putative class actions challenged the settlement and the Bankruptcy Court’s decision holding that the class actions violated the automatic stay of the Bankruptcy Code and were otherwise enjoined.  Yesterday, the United States District Court for the Southern District of New York upheld the settlement and the Bankruptcy Court’s decision finding that the class actions were duplicative or derivative of the Trustee’s action and thus were void ab initio un

In the matter of Lehman Brothers International (Europe) (In Administration) and in the matter of the Insolvency Act 1986 [2012] UKSC 6 On appeal from [2010] EWCA Civ 917  

Summary

Commercial Agreements -v- Commercial Reality: Supreme Court further develops principles of contractual interpretation?

Rainy Sky S.A. and others v Kookmin Bank [2011] UKSC 50

Summary

The healthcare industry was ailing in 2011. There were 88 publicly traded companies that filed for Chapter 11 relief in 2011, and of that amount, approximately 11 companies were in the healthcare industry. The healthcare industry led the group, with telecommunications and energy tied for second place (nine filings in each industry). The healthcare industry has faced many challenges over the years. For starters, hospitals are not always paid for their services.

In a recent decision from the United States Bankruptcy Court of the Southern District of New York by Judge Martin Glenn in theIn re Borders Group, Inc. case, Jefferies was awarded a "Liquidation Fee" even though it was not involved in the actual liquidation of Borders Group, Inc. (the "Debtors" or "Borders"), and was unsuccessful in procuring a going-concern sale for the Borders business. As a result, approximately 400 stores were sold in September of 2011.

Today (20th December) the Court of Appeal has clarified how TUPE applies when a business is sold after administration proceedings are instituted. It has decided that employees transfer to the new owner of the business, and are protected from transfer-related dismissals, thereby putting to rest more than two years of legal uncertainty following conflicting decisions from the Employment Appeal Tribunal (EAT).

Yesterday Governor Scott Walker signed into law SB 241 which permits non-judicial foreclosures for mortgages and assessment liens on timeshare estates and licenses.  The new law took effect upon being signed by Governor Scott Walker.

Clients active in commodities markets (e.g. large consumers of copper and other metals) may be affected by the collapse of MF Global which was recently placed into Chapter 11 process in the US and into Administration in the UK. MFGlobal was an active clearing agent on numerous metal exchanges including the London Metal Exchange.

Patient care ombudsmen are sometimes appointed to monitor the care provided to patients of medical facilities that have filed for bankruptcy. Courts, however, weigh a number of factors in determining whether an ombudsman should be appointed, and whether the patients and the facility’s creditors would benefit from the appointment.

A recent New York bankruptcy case holds that shareholders, directors and officers who dissolve a corporation to avoid paying a judgment against the business may be jointly and severally liable for a non-dischargeable debt in their personal bankruptcies.