Fulltext Search
What happens when your organization is ‘in the zone?’

In a troubled economy where businesses are struggling to survive, it is no surprise that many organizations find themselves insolvent or nearly insolvent. Directors of insolvent or nearly insolvent organizations are facing the question of to whom they owe their duty of loyalty, and whose best interest must they consider when making decisions. When in the zone of insolvency, directors still owe a duty to stakeholders to act in their best interests.

USA, Insolvency & Restructuring, Litigation, Bricker & Eckler LLP, Shareholder, Unsecured debt, Breach of contract, Fiduciary, Board of directors, Consideration, Economy, Duty of care, Delaware Supreme Court
Sixth Circuit affirms bankruptcy court's decision permitting cramdown of a secured creditor's interest in an unattached mobile home and land

Reinhardt v. Vanderbilt Mortgage and Finance Inc. (In re Reinhardt)

563 F.3d 558 (6th Cir. Ohio 2009)

USA, Insolvency & Restructuring, Litigation, Real Estate, Bricker & Eckler LLP, Bankruptcy, Debtor, Unsecured debt, Interest, Federal Reporter, Mortgage loan, Personal property, Secured creditor, US Code, Title 11 of the US Code, United States bankruptcy court, Sixth Circuit
The Supreme Court disallows transfer tax exemption for asset sales conducted prior to plan confirmation

On June 16, 2008, the United States Supreme Court held that the stamp-tax exemption under 11 U.S.C. § 1146(a) does not apply to transfers made before confirmation of a Chapter 11 plan. This decision will impact the structuring of asset sales in Chapter 11 cases where the transfers involve significant stamp taxes or similar taxes. Full text of the opinion.

USA, Insolvency & Restructuring, Litigation, Tax, Bricker & Eckler LLP, Tax exemption, Unsecured debt, Stamp duty, Majority opinion, US Code, Supreme Court of the United States, Eleventh Circuit