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S.D.N.Y. Bankruptcy Court denies claim for make-whole premium and allows cram down of debtors’ chapter 11 plan paying secured creditors below-market interest rates on replacement notes

On August 26, 2014, the Honorable Robert D. Drain, Bankruptcy Judge of the United States Bankruptcy Court for the Southern District of New York, issued several bench rulings (the “Bench Rulings”) in connection with confirmation of a plan of reorganization in the chapter 11 cases of MPM Silicones, LLC, et al.

USA, New York, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Debtor, United States bankruptcy court
Fourth Circuit invalidates third-party release provision in chapter 11 plan

On June 27, 2014, in National Heritage Foundation, Inc. v. Highbourne Foundation, 1 the United States  Court of Appeals for the Fourth Circuit, agreeing with decisions by the Bankruptcy Court for the Eastern  District of Virginia and the District Court for the Eastern District of Virginia, which were issued upon  remand from a prior appeal, held that the third-party non-debtor release provision in the chapter 11 plan  of reorganization of National Heritage Foundation, Inc.  was invalid.

USA, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Debtor, Remand (court procedure), Fourth Circuit, Sixth Circuit
Chapter 11 plan provision allowing individual members of official committee to be reimbursed for professional fees and expenses held invalid, but committee members may be awarded reimbursement for professional fees and expenses incurred in making a

Substantial Contribution to the Case

USA, New York, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP
Eighth Circuit holds that trademark license included in substantially performed integrated asset purchase transaction is not an executory contract subject to rejection

On June 6, 2014, in Lewis Brothers Bakeries Incorporated and Chicago Baking Company v.

USA, Insolvency & Restructuring, Litigation, Trademarks, Fried Frank Harris Shriver & Jacobson LLP, Eighth Circuit
The Supreme Court clarifies the role of bankruptcy courts in Stern v. Marshall-type proceedings, but leaves consent issue for another day

Background

USA, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Tortious interference, United States bankruptcy court
Proposed changes to the UK listing regime

Yesterday the UK Financial Conduct Authority (the “FCA”) published  the final text of some significant changes to the Listing Rules.1 The changes, which will come into force on 16 May 2014, are intended to enhance the effectiveness of the UK listing regime, particularly in situations where the rights of minority shareholders are at risk of being abused, and to address concerns in relation to the potential influence of 

controlling shareholders on UK listed companies, while ensuring that London remains an attractive listing 

venue.

United Kingdom, Capital Markets, Company & Commercial, Insolvency & Restructuring, Telecoms, Fried Frank Harris Shriver & Jacobson LLP, Listing Rules, Financial Conduct Authority (UK)
Debt fund enjoined from voting on chapter 11 plan because it is not a “financial institution” under assignment eligibility clause of loan agreement

Assignees of Loan Only Entitled to One Collective Vote on Plan

USA, Washington, Banking, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Injunction, Debt, Default (finance), Distressed securities, United States bankruptcy court
Pre-packs and the “new and improved” SIP 16

A new Statement of Insolvency Practice 16 ("SIP 16") relating to pre-packaged sales in administration ("Pre-Packs") came into force on 1 November 2013.

United Kingdom, Insolvency & Restructuring, Fried Frank Harris Shriver & Jacobson LLP
Whose tax refund is it? Eleventh Circuit holds that chapter 11 debtor parent company must distribute tax refunds to members of a consolidated group under a tax sharing areement

On August 15, 2013, in Zucker v.

USA, Insolvency & Restructuring, Litigation, Tax, Fried Frank Harris Shriver & Jacobson LLP, Bankruptcy, Debtor, Holding company, Tax return (USA), Federal Deposit Insurance Corporation (USA), United States bankruptcy court, Eleventh Circuit
UK corporate update – recent cases of interest

This corporate update summarises certain decisions in the Court of Appeal and the Supreme Court relating to the balance sheet insolvency test, agreements to agree and the exercise of contractual discretion. The decisions clarify the law in a number of areas of day-to-day relevance.

UK BALANCE SHEET INSOLVENCY TEST: Implications for lenders and borrowers

Background

United Kingdom, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Interest, Balance sheet, Lehman Brothers cases, Insolvency Act 1986 (UK), Court of Appeal of England & Wales