Trust Indenture Act Section 316(b) Limited to Actual Amendments to An Indenture’s Core Terms

The Perishable Agricultural Commodities Act (PACA) was passed by Congress in 1930 to protect agricultural produce suppliers from unscrupulous vendors who refused to pay the suppliers for their goods.

Decision clarifies standards for priority treatment under section 507(a)(7); important implications in retail bankruptcy cases for debtors, creditors - and consumers

Overview

milbank.com 1 Client Alert: Close-out Netting Provisions partially held invalid by German Federal Court of Justice General Administrative Act (Allgemeinverfügung) issued by German Federal Supervisory Authority to avoid Legal Uncertainty and Distortions in Financial Markets EXECUTIVE SUMMARY The German Federal Court of Justice (Bundesgerichtshof, "BGH") ruled on 9 June 2016 that contractual close-out netting provisions which deviate from section 104 of the German Insolvency Code (Insolvenzordnung) are invalid and section 104 of the German Insolvency Code applies in lieu of the invalid contra

On March 2, 2016, Sports Authority, Inc. (“Sports Authority”) and six of its affiliates filed for Chapter 11 bankruptcy in Delaware.  The filing will significantly impact Sports Authority’s landlords and trade creditors.  In a press release, Sports Authority stated that it intends to close or sell approximately 140 locations and two distribution centers in the coming months.  The company is also seeking $595 million in post-bankruptcy financing to continue operations.  Sports Authority is a sporting goods retailer with 463 locations in 41 states and Puerto Rico.

Employers scored a big victory in In re Trump Entertainment Resorts, a case of first impression in the Third Circuit, which held that a debtor-employer can terminate their obligations under an expired Collective Bargaining Agreement (CBA) and implement the terms of a final offer.

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The Issue and Background

On April 17, NewSat Ltd. (NewSat) and various affiliates, including Jabiru Satellite Holdings Pty Ltd., were placed in administration in Australia by the trustee for its lenders, Citicorp International, and related petitions were filed in the U.S.

A recent court ruling highlights the need for robust governance practices for nonprofits, particularly those facing financial difficulties.  The Third Circuit Court of Appeals affirmed a jury’s award of $2.25 million in compensatory damages against former directors and officers of a bankrupt nonprofit corporation - personal liability for breach of fiduciary duties and “deepening insolvency.”¹  The court also affirmed punitive damages against the officer defendants, but vacated the award of punitive damages against the director defendants.

On March 25, LightSquared Inc. obtained U.S. Bankruptcy Court approval to exit Chapter 11 protection pursuant to a restructuring plan that will pay its largest creditor, Charles Ergen, roughly $1.5b in cash to account for full repayment, with interest, of Ergen’s holdings of LightSquared debt.