Alerts and Updates
The opinion is significant for a number of reasons, not least of which is that the Bankruptcy Court held that a make-whole premium is not a claim for unmatured interest as the Court of Appeals had intimated.
When stakeholders in a bankruptcy disagree as to how assets should be distributed, the result may be intercreditor litigation that is both expensive and time-consuming. Such litigation can seem antithetical to the purpose of the Bankruptcy Code, which encourages stakeholders to approve a consensual restructuring plan. Nevertheless, many creditors conclude they have no other choice but to litigate.
On 29 September 2020, lawyers from Carey Olsen obtained adecision from the Commercial Court in the British Virgin Islands (BVIs), approving the use of third party funding (TPF) by liquidators in a BVI insolvency case.
In In re Smith, (B.A.P. 10th Cir., Aug. 18, 2020), the U.S. Bankruptcy Appellate Panel for the U.S. Court of Appeals for the Tenth Circuit recently joined the majority of circuit courts of appeals in finding that a creditor seeking a judgment of nondischargeability must demonstrate that the injury caused by the prepetition debtor was both willful and malicious under Section 523(a)(6) of the Bankruptcy Code.
Factual Background
Alerts and Updates
The Third Circuit’s ruling in In re Tribune provides important insight on what it means for a plan to unfairly discriminate.
As in most countries around the globe, businesses and individuals in Singapore are grappling with the financial fallout from the COVID-19 pandemic.
Although not drafted with the effects of a pandemic in mind, new insolvency and restructuring laws in Singapore are timely and should provide valuable assistance in some circumstances.
Due to the COVID-19 pandemic, Mexican courts were closed for the past few months and only received urgent cases.
The COVID-19 pandemic has had a negative impact on the Mexican economy. As a result, Mexican courts have seen a rise in insolvency cases, which are not as common in Mexico compared to other jurisdictions, such as the United States. The rise of insolvency cases imposes new challenges to Mexican courts and Mexico’s laws.
In a recent decision, the U.S. Bankruptcy Court for the Southern District of New York held that claim disallowance issues under Section 502(d) of the Bankruptcy Code "travel with" the claim, and not with the claimant. Declining to follow a published district court decision from the same federal district, the bankruptcy court found that section 502(d) applies to disallow a transferred claim regardless of whether the transferee acquired its claim through an assignment or an outright sale. See In re Firestar Diamond, 615 B.R. 161 (Bankr. S.D.N.Y. 2020).
Nearly two years after it was first passed in Parliament on 1 October 2018, the Insolvency, Restructuring and Dissolution Act (“IRDA”) has now come into operation on 30 July 2020. The IRDA not only unifies Singapore’s legislation in relation to personal and corporate insolvency and debt restructuring, but also introduces significant changes to the present regime.
In this update, we will highlight nine key changes of the new provisions of the IRDA.
1. Restriction of Ipso Facto Clauses in Insolvency/Restructuring Proceedings