- Introduction
The pace at which Corona-Pandemic restricts our way of life and imposes severe consequences on our economy is breathtaking. The results are already evident today with more to come. In widespread parts of the economy, current developments lead to considerable loss of income and drastic decreases in sales and profits.
- Introduction
The situation due to the coronavirus has resulted in a massive disruption and to some extent even in a complete standstill of public and social life with far-reaching consequences for the national and international economy. The recent border closures will have a further impact on the movement of people and goods.
As a result, the German Federal Government has announced that it will provide several instruments to reduce the impact of the situation:
Holders of trademark licenses can breathe a sigh of relief after the Supreme Court issued its decision on May 20, 2019, in Mission Product Holdings, Inc. v. Tempnology, LLC[1] holding that a debtor-licensor’s rejection of a trademark licensing agreement under section 365 of the bankruptcy code does not automatically terminate the licensee’s right to continue using the trademark.
In an 8-1decision issued on May 20, the Supreme Court held that rejection of an executory trademark license agreement in a bankruptcy of the licensor is merely a breach, and not a termination or rescission, of the agreement. The licensee retains whatever rights it would have had upon a breach of the agreement prior to bankruptcy and can continue to use the trademarks pursuant to its contractual rights under applicable law. Mission Product Holdings, Inc. v. Tempnology, LLC, 587 U.S. ___, No. 17-1657 (May 20, 2019).
Background
I. Introduction
Italy has replaced its Bankruptcy Act of 1942 with a comprehensive reform, the process for which started two years ago. On 19 October 2017, Parliament passed Law No. 155 of 2017 delegating the Government to adopt, within the next 12 months, a comprehensive reform of the rules governing financial crises and insolvency procedures. On 10 January 2019, the Government approved Legislative Decree No. 14 of 2019, captioned “Code for Distress and Insolvency” (Codice della Crisi d’Impresa e dell’Insovenza—the “Code”).
What Is the "Rule in Gibbs"?
The rule in Gibbs is a long-established common law principle in which the Court of Appeal determined that a debt governed by English law cannot be discharged or compromised by a foreign insolvency proceeding(Anthony Gibbs and Sons v La Société Industrielle et Commerciale des Métaux (1890) 25 QBD 399). The rule in Gibbs remains a fundamental tenet of English insolvency law.
Why Does the Rule in Gibbs Matter?
In a brief but significant opinion, the United States District Court for the District of Delaware reversed a decision by the United States Bankruptcy Court for the District of Delaware and allowed more than $30 million in unsecured, post-petition fees incurred by an indenture trustee ("Indenture Trustee").1 In reversing, the District Court relied upon a uniform body of Court of Appeals opinions issued on the subject.
At a time when the actions of directors, both collectively and individually, have received considerable attention in both the academic and public press, the need for directors to understand their duties, and the steps that can be taken to fulfill their obligations and minimise potential liabilities, becomes especially important.
This article considers:
On October 20, 2017, in In re MPM Silicones, LLC ("Momentive"), Nos. 15-1682, 15-1771, 15-1824, the Second Circuit Court of Appeals, considering the Supreme Court's opinion in Till v. SCS Credit Corp., 541 U.S. 465 (2004), adopted the Sixth Circuit's two-step approach to determining an appropriate cramdown interest rate that, in certain circumstances, results in the application of a market rate of interest. In doing so, the Second Circuit reversed the bankruptcy and district court holdings on the cramdown interest rate issue.