Firm Articles | Global Insolvency

In Green Tree Serv., LLC v. DBSI Landmark Towers LLC,1 a case that is significant for landlords and leasing attorneys, the Eighth Circuit recently held that a subtenant of commercial office space was permitted to vacate its leased premises after the rejection of the master lease and sublease by the debtor-sublandlord, notwithstanding an attornment provision in the sublease requiring the subtenant to attorn2 to the landlord when the landlord either terminates the master lease or otherwise succeeds to the interest of the sublandlord under the master lease.

USA, Insolvency & Restructuring, Litigation, Real Estate, Greenberg Traurig LLP, Bankruptcy, Debtor, Landlord, Leasehold estate, Interest, Limited liability company, Vacated judgment, Title 11 of the US Code, Eighth Circuit, United States bankruptcy court

Third Circuit holds that a portion of post-petition withdrawal liability in bankruptcy is entitled to priority over general unsecured claims

03 October 2011

Recently, the Third Circuit held that withdrawal liability triggered after a bankruptcy filing date may be apportioned to pre- and post-petition service for the debtor, and that the withdrawal liability attributable to post-petition service may be entitled to priority over general unsecured claims under the Bankruptcy Code. Employers that participate in a multiemployer pension plan should determine the claims impact of withdrawal in light of this court decision and also assess whether filing for bankruptcy protection outside of the Third Circuit is appropriate.

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, McDermott Will & Emery, Bankruptcy, Employee Retirement Income Security Act 1974 (USA), Debtor, Unsecured debt, Memorandum of understanding, Liability (financial accounting), Collective bargaining agreements, Vesting, Constitutional amendment, Title 11 of the US Code, United States bankruptcy court, Third Circuit

Alleged trademark sublicense assignable in bankruptcy

31 August 2011

Considering the fate to befall certain trademarks upon an owner’s bankruptcy, the U.S. Court of Appeals for the Seventh Circuit Court determined that a trademark license is not assignable without the owner’s express permission or in the absence of a clause explicitly authorizing assignment and a trademark license cannot be implied from a contract for services. In re XMH Corp., Case No. 10-2596 (7th Cir. August 2, 2011) (Posner, J.).

USA, Insolvency & Restructuring, Litigation, Trademarks, McDermott Will & Emery, Bankruptcy, Subsidiary, Seventh Circuit

FDIC approves final executive pay clawback rule

07 July 2011

The Federal Deposit Insurance Corporation (“FDIC”) has approved a final rule authorizing it to clawback any compensation senior executives and directors received within two years of the FDIC being appointed receiver, if the FDIC finds they were “substantially responsible” for the failed condition of a covered financial company. Of particular concern, the rule (implementing section 210(s) of the Dodd-Frank Act):

USA, Banking, Capital Markets, Insolvency & Restructuring, Insurance, Greenberg Traurig LLP, Fraud, Board of directors, Executive compensation, Negligence, Legal burden of proof, Gross negligence, Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)