A debtor ordinarily may discharge debts in bankruptcy, unless one of several exceptions apply. One of the preclusions to dischargeability of certain debts, found in Section 523(a)(19) of the U.S.

No, says the U.S. Court of Appeals for the Tenth Circuit in In re Cowen, adopting the minority rule and parting ways with four other Courts of Appeals.

What’s on the horizon? A focus on dispute resolution in the Year of the Rooster What's on the horizon? A focus on dispute resolution in the Year of the Rooster 1 What to expect in the Year of the Rooster In this bulletin we examine some of the key dispute resolution and regulatory challenges facing business managers, financial controllers, and in-house counsel in the Year of the Rooster. 1.

The doctrine of substantive consolidation (generally- the power of a bankruptcy court to consolidate the assets and liabilities of affiliated entities in bankruptcy) is a recognized remedy exercised by bankruptcy courts – one that strikes fear into the hearts of many lenders. Justifiably so. The doctrine can be employed to order the substantive consolidation of related-debtor entities in bankruptcy and it can also be employed to substantively consolidate the assets of a debtor in bankruptcy with those of a related entity that is not a debtor in bankruptcy.

In a 2-1 opinion, the Second Circuit overruled the district court in Marblegate Asset Management LLC v. Education Management Corp., finding no violation of the Trust Indenture Act (“TIA”) in connection with an out-of-court debt restructuring.

Background

On 3 June 2016, the Supreme Court ruled that a valid right of pledge can be established on goods that are delivered subject to retention of title (of ownership). If the buyer is declared bankrupt, the conditional ownership can become an unconditional ownership if the condition precedent is fulfilled (mostly full payment of the purchase price). Next to the buyer, the pledgee can also fulfil this condition. As a consequence, these goods are not part of the bankrupt estate, so that the pledgee can take recourse against these goods.

The facts

Op 3 juni 2016 heeft de Hoge Raad geoordeeld dat er een geldig pandrecht kan worden gevestigd op zaken die onder eigendomsvoorbehoud zijn geleverd aan de koper. Indien de koper failliet wordt verklaard, kan het voorwaardelijke eigendomsrecht uitgroeien tot een onvoorwaardelijk eigendomsrecht door vervulling van de voorwaarde jegens de verkoper (veelal volledige betaling van de koopsom). Ook de pandhouder kan deze voorwaarde vervullen. Het gevolg hiervan is dat genoemde zaken niet in de faillissementsboedel vallen, maar dat de pandhouder hier verhaal op kan nemen.

In two months' time the Insolvency (England and Wales) Rules 2016 will come into force (with effect from 6 April 2017). This date has been long in the making the first draft of the new rules was published in September 2013.

The new rules are not intended to change the law. Their main aim is to consolidate provisions in order to reduce repetition, ensure that there is a more logical structure and modernise and simplify the language (including gender neutral drafting).

This briefing highlights a few of the key changes.

Het is pandhouders op grond van artikel 3:246 lid 1 Burgerlijk Wetboek (BW) toegestaan om een pandrecht op vorderingen uit te winnen door middel van het opeisen van de vordering. Deze bevoegdheid omvat tevens het recht om zekerheidsrechten uit te winnen die aan de verpande vordering zijn verbonden. Dit is bevestigd in een arrest van de Hoge Raad van 18 december 2015 (ABN AMRO / Marell).

Feiten

Pursuant to Article 3:246 paragraph 1 of the Dutch Civil Code (DCC) pledgees have the power to enforce their right of pledge on receivables by claiming (direct) payment of the receivable. This power also includes the right to enforce rights of pledge that in their turn have been granted as security for the repayment of the pledged receivable. The Supreme Court confirmed this in its judgement of 18 December 2015 (ABN AMRO / Marell).