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Court reduces administrators’/liquidators’ excessive remuneration due to inadequate remuneration reports

Facts

Mr Lock and Mr Sheahan (the liquidators) performed their roles as administrators, and then as liquidators, of three companies.

The liquidators carried out numerous tasks across four work streams: (1) investigating the identities of a creditor and shareholders of one of the companies; (2) potential claims against the companies’ directors and a bank; (3) issues arising under the Proceeds of Crime Act 2002 (Cth); and (4) applications relating to receivers that had been appointed.

Australia, Capital Markets, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria
Second Circuit Confirms Madoff Trustee’s Ability to Recover Foreign Transfers

The Bottom Line

USA, New York, Banking, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Trustee, Second Circuit, United States bankruptcy court
SDNY Bankruptcy Court Finds Bar Date Applies to Pension Fund’s Withdrawal Liability Claim Before Withdrawal Occurs

The Bottom Line

The U.S. Bankruptcy Court for the Southern District of New York entered a decision confirming the applicability of the Court’s bar date order as it relates to a pension fund’s claim for withdrawal liability filed after the bar date, despite the fact that the withdrawal occurred after the deadline for filing proofs of claim.

What Happened?

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Mutual fund, Investment funds, US District Court for the Southern District of New York
Southern District of New York Dismisses Securities Law Claims on Grounds of International Comity; No Chapter 15 Proceeding Required

The Bottom Line

Canada, USA, New York, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Companies' Creditors Arrangement Act 1933 (Canada), US District Court for the Southern District of New York
Fifth Circuit Analyzes Creditor’s Impairment, Entitlements to Contractual Make-Whole and Post-Petition Interest Under Solvent-Debtor Chapter 11 Plan

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court, Fifth Circuit
Court scuppers foreign Trustee’s attempt to use Australia’s insolvency laws to recover luxury yacht

King (Trustee); In the matter of Zetta Jet Pte Ltd v Linkage Access Limited [2018] FCA 1979 is the latest in a series of decisions, across multiple proceedings, dealing with the dogged attempts of a United States bankruptcy trustee to recover a luxury yacht moored in Australian waters.

Australia, Global, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Trustee
Bankruptcy Court for the Southern District of New York Holds That Bankruptcy Court Retains Jurisdiction Over Fraudulent Transfer Action Even If Defendant-Creditor Withdraws Proof of Claim

The Bottom Line

USA, New York, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court
Fifth Circuit Disallows Make-Whole Payment in Bankruptcy

On Jan. 19, 2019, the U.S. Court of Appeals for the Fifth Circuit vacated a bankruptcy court decision awarding Ultra Petroleum Corp. noteholders $201 million in make-whole payments and $186 million in post-petition interest. Under the note agreement, upon a bankruptcy filing, the issuer is obligated for a make-whole amount equal to the discounted value of the remaining scheduled payments (including principal and interest that would be due after prepayment) less the principal amount of the notes.

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Fifth Circuit
Fifth Circuit Holds That Creditor Lacks Constitutional Standing to Appeal

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Shipping & Transport, Kramer Levin Naftalis & Frankel LLP, ING Group, Fifth Circuit
Delaware Bankruptcy Court Finds that Section 546(e) Does Not Protect Fraudulent Transfers Following Supreme Court’s Ruling in Merit Management

The Bottom Line

In one of the first applications of the Supreme Court’s ruling on the scope of section 546(e) in Merit Management, Delaware Bankruptcy Court Judge Carey found that section 546(e)’s safe harbor did not apply to fraudulent transfers between two parties that were not financial institutions, even if the transaction passed through financial intermediaries.

What Happened

USA, Delaware, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court