Sadly, sometimes tragedy strikes, as it did for the Montreal Maine & Atlantic Railway Ltd. in July, 2013, when one of its trains carrying crude oil derailed and exploded, resulting in 47 deaths, significant property and environmental damage, and the bankruptcy of the Railway. The Railway had a business interruption insurance policy, a settlement was reached with the insurer and the question of who was entitled to the multi-million-dollar settlement arose in the bankruptcy. In re Montreal Maine & Atlantic Ltd., 2014 Bankr. LEXIS 1628. 59 Bankr. Ct. Dec. 101 (Bankr. D.

A recent decision from an Oregon bankruptcy court provides a cautionary tale for lenders attempting to “bankruptcy proof” their borrowers. 

Once might be considered an aberration. Is twice the new normal?

On December 19, 2013, the Ontario Court of Appeal held that the Registrar of Motor Vehicles (the “RMV”) cannot deny vehicle permits to individuals on account of pre- bankruptcy debts owing to the ETR Concession Company Limited (the  “ETR”). Based  on the  intent and  purpose of federal bankruptcy law to permit debtors to obtain a “fresh start,” it was concluded that the provincial act establishing the ETR conflicts with bankruptcy law and was, as a result, unconstitutional in part.

Background

Bankruptcy court denizens, especially buyers of secured debt at a discount, were jolted by the recent Delaware Bankruptcy Court decision in In re Fisker Automotive Holdings, Inc. In that decision, the court capped at $25 million the amount a secured creditor was permitted to credit bid its $168 million claim at a bankruptcy Section 363 sale. The $25 million credit bid cap correlated to the amount the secured creditor paid for the debt. While Section 363(k) of the Bankruptcy Code permits a bankruptcy court to limit credit bidding “for cause,” the concerns he

The Seventh Circuit Court of Appeals recently held that a plan under chapter 13 of the Bankruptcy Code can modify the rights of a purchaser of delinquent real estate taxes on a debtor’s home by providing for payment of those taxes over time rather than in a lump sum. See In re LaMont (No. 13-1187, 7th Cir. January 7, 2014).

Supreme Court Rules on Importing And Selling Foreign Made Goods

Nearly two years ago, a bankruptcy court in the Central District of Illinois caused quite a bit of commotion in the lending community when it held that the provisions of Section 11 of the Illinois Conveyances Act (the “Act”) (765 ILCS 5/11) were mandatory rather than permissive.  Crane v. Richardson (In re Crane), 20121 WL 669595 (Bankr. C.D. Ill. Feb. 29, 2012).

In a November 20,2013 decision in the Companies Creditors’ Arrangement Act (the “CCAA”) proceedings of Aveos Fleet Performance Inc. and Aero Technical US, Inc.

Based on progress to date, a Model Act on Appointment and Powers of Real Estate Receivers may be making its way to a state legislature near you within the next couple of years.  The Committee appointed by and representing the National Conference of Commissioners on Uniform State Laws to prepare the model act met again in late September, 2013, to review the latest working draft of the