Recently, on the eve of closing a large mortgage loan for a regional mall intended for a single asset securitization, it was determined that there was an extremely remote risk that the mortgage might not be foreclosable due to a peculiarity of the improvements on the real property and local foreclosure practices.
Numerous public-private partnerships have been formed in recent years as a device for funding infrastructure projects such as ports, toll roads and other transportation projects, sewer systems and parking garages. State and local governments, which have been strapped for cash to spend on infrastructure projects, have granted private entities the right to operate various infrastructure projects in exchange for a significant up-front payment and/or periodic payments.
On January 17, 2013, the United States Bankruptcy Court for the Southern District of New York decided that American Airlines (American) was not obligated to pay certain make-whole premiums set forth in some of its loan indentures at the time that American refinanced the applicable loans. A makewhole premium typically allows a lender to be compensated for having to reinvest in a lower interestrate environment when a borrower prepays its debt before the original maturity date.
What do the Pocahontas Parkway (Richmond, Va., vicinity), South Bay Expressway (San Diego, Calif.) and Indiana Toll Road have in common?
All are toll road projects that are currently undergoing or have been through a restructuring – or even bankruptcy. While traditional restructuring tools are certainly available in restructuring toll road deals, toll road restructurings also present unique considerations that warrant special attention.
The U.K. Supreme Court has handed down its judgment in the joined cases of Rubin and another v Eurofinance SA and others and New Cap Reinsurance Corporation (in liquidation) and another v A E Grant and others [2012] UKSC 46. (24 October 2012)
Key points:
Key Considerations When Determining Whether to Resign from a Board in Advance of a Bankruptcy Filing
How has the bankruptcy and restructuring landscape changed in the wake of the global financial crisis?
The U.S. Supreme Court will soon rule on a case of farreaching importance for any party affected by a Chapter 11 plan in a business bankruptcy case. At stake is the longstanding expectation of secured lenders that they'll either be repaid or permitted to take their collateral by means of a credit bid; in other words, paying for the collateral with their lien.
Introduction
Fraudulent Leveraged Buy-Outs
Operating Company/Property Company
Dividend Recapitalizations
Deepening Insolvency
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