On June 1, 2009, General Motors Corporation (“GM”) filed for Chapter 11 bankruptcy protection in the Bankruptcy Court of the Southern District of New York (the “Court”). Pursuant to numerous first day motions filed by GM, the Court has entered various orders relating to the administration of this bankruptcy proceeding. Of particular significance to GM’s suppliers are the following:

1. Deadlines Relating to the Assumption of Supplier Contracts.

General Motors and Affiliates File for Chapter 11 Bankruptcy Protection

Visteon and Affiliates File for Bankruptcy Protection

Visteon Corporation and related affiliates (“Visteon”) filed voluntary bankruptcy petitions on May 28, 2009, in the United States Bankruptcy Court for the District of Delaware (“Bankruptcy Court”). Visteon intends to continue to operate its businesses while in bankruptcy. Although Visteon UK, Ltd., has already filed bankruptcy in Great Britain, it appears that Visteon’s other non-U.S. subsidiaries will not be filing separate proceedings and will not be part of Visteon’s U.S. bankruptcy proceeding.

The Act of January 31, 2009 on the continuity of companies (Loi relative à la continuité des enterprises/Wet betreffende de continuïteit van de ondernemingen, the "Act") entered into force on April 1, 2009.

When doing business with a Luxembourg company in financial distress, the counterpart should be aware that certain transactions are at risk.

Doing business with a bankrupt Luxembourg company

A bankrupt Luxembourg company is automatically deprived from the administration of its assets. All transactions must be entered into by the receiver in bankruptcy acting in the name and on behalf of the bankrupt company.

In cross border financing transactions, a secured creditor should be aware of Dutch law specifics when dealing with a Dutch obligor in financial distress. Below is a highlighted list of specifics for a secured creditor planning to foreclose on its security or when seeking to improve its security position.

Improving security position

Existing Dutch security documents typically provide for possibilities for improving the position of a secured creditor in case of an event of default.

Getting a tighter grip on collateral

On October 13 2008 the Amsterdam District Court declared the emergency regulations underthe Financial Supervision Act applicable to the Dutch branch of Landsbanki (Icesave).(1) This update looks at:

The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.  

AUTOMOTIVE

Mark IV Industries, affiliates file Chapter 11; reach “agreement in principle” with lenders.  

GAMING  

The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.  

AGRICULTURE  

Greenhouse farmer Eurofresh Inc. files Chapter 11 in Arizona.  

AUTOMOTIVE  

Chrysler and Affiliates File for Bankruptcy Protection

Chrysler LLC and related affiliates (“Chrysler”) filed voluntary bankruptcy petitions on April 30, 2009, in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). Chrysler intends to continue to operate its businesses while in bankruptcy. Chrysler’s non-U.S. subsidiaries do not appear to be included in Chrysler’s U.S. bankruptcy filing and will continue to operate outside the supervision and jurisdiction of the Bankruptcy Court.