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ECJ decision paves the way for liability of managing directors of foreign companies under section 64 of the German Limited Liability Companies Act (GmbHG)

In its ruling dated 10 December 2015, case ref. C-594 / 14, the ECJ decided that the liability of a managing director for prohibited payments following insolvency under section 64 of the GmbHG is a provision covered by insolvency law and therefore falls within the scope of application of the EU Insolvency Regulation.

European Union, Germany, Company & Commercial, Insolvency & Restructuring, Litigation, CMS Germany, Court of Justice of the European Union
Third Circuit Permits Debtor to Reject Expired Collective Bargaining Agreement

On January 15, 2016, the United States Court of Appeals for the Third Circuit (the “Third Circuit”) held in In re Trump Entertainment Resorts that section 1113 of the Bankruptcy Code permits a debtor to reject an expired collective bargaining agreement (“CBA”).

USA, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Debtor, UNITE HERE
Personal liability of a “weak” provisional insolvency administrator for an escrow account established for enforcement purposes

In a judgment dated 26 / 03 / 2015, ref. no. IX ZR 302 / 13, the Federal Court of Justice (BGH) held that a provisional insolvency administrator is personally liable for monies paid into the escrow account in the event of claims of unjust enrichment being made due to the payments having no proper basis in law.

The ruling related to the following situation:

Germany, Insolvency & Restructuring, Litigation, CMS Germany, Unjust enrichment
Persönliche Haftung des vorläufigen schwachen Insolvenzverwalters für das Vollstreckungstreuhandkonto

Mit Urteil vom 26. März 2015, AZ IX ZR 302 / 13, entschied der BGH, dass ein vorläufiger Insolvenzver- walter für Zahlungen auf das Voll- rechtstreuhandkonto persönlich haf- tet, wenn Bereicherungsansprüche wegen rechtsgrundloser Zahlungen geltend gemacht werden.

Dieser Entscheidung lag folgender Sachverhalt zu Grunde:

Germany, Insolvency & Restructuring, Litigation, CMS Germany, Debtor
Rights of creditors will be determined by contract terms and fraudulent conveyance statutes; creditors’ derivative fiduciary duty claims will succeed only in the rarest of circumstances—Quadrant v. Vertin

In Quadrant Structured Products Company, Ltd. v. Vertin (Oct. 20, 2015), the Delaware Court of Chancery, in a post-trial decision, rejected Quadrant’s challenges to transactions by Athilon Capital Corp., with Athilon’s sole stockholder (private equity firm Merced), after Athilon had returned to solvency following a long period of insolvency. Merced held all of Athilon’s equity and all of its junior notes; and both Quadrant and Merced held the company’s publicly traded senior notes.

USA, Delaware, Company & Commercial, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP
Germany: implementation of the Single Resolution Mechanism

Report contents:

Germany, Banking, Capital Markets, Insolvency & Restructuring, CMS Germany
Update banking & finance - July 2015

Banking & Finance Aktuelle Informationen des Geschäftsbereichs Banking & Finance News from the Banking & Finance practice Juli/July 2015 4 | Editorial Fokus 6 | BaFin erlaubt regulierten Fonds die direkte Kreditvergabe 8 | Immer wieder Restrukturierung von Anleihen 10 | Zur Verwertung von mit fremden Marken gekennzeichnetem Sicherungsgut durch den Sicherungsnehmer und der Bedeutung des markenrechtlichen Erschöpfungsgrundsatzes, §24 Abs.

Germany, Banking, Capital Markets, Company & Commercial, Insolvency & Restructuring, Litigation, CMS Germany
Third Circuit permits the use of structured dismissals that deviate from the Bankruptcy Code’s priority scheme

On May 21, 2015, the United States Court of Appeals for the Third Circuit (the “Third Circuit”) affirmed the order of the United States District Court for the District of Delaware in Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc. (In re Jevic Holding Corp.) approving a settlement and dismissal of a chapter 11 case by way of a “structured dismissal.” A structured dismissal is, simply, the dismissal of the bankruptcy case preceded by other orders, such as an order approving a settlement or granting releases, which survive dismissal of the case.

USA, Delaware, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, United States bankruptcy court, Third Circuit
The Supreme Court rules that bankruptcy judges may adjudicate Stern claims with the parties’ knowing and voluntary consent

To Our Clients and Friends Memorandum friedfrank.com Copyright © 2015 Fried, Frank, Harris, Shriver & Jacobson LLP 06/04/15 A Delaware Limited Liability Partnership 1 The Supreme Court Rules That Bankruptcy Judges May Adjudicate Stern Claims with the Parties’ Knowing and Voluntary Consent On May 26, 2015, the Supreme Court in Wellness International Network v.

USA, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Consent, Article III US Constitution, United States bankruptcy court
Supreme Court rules that an order denying confirmation of a chapter 13 plan is not a final appealable order

On May 4, 2015, the Supreme Court of the United States affirmed the order of the United States Court of Appeals for the First Circuit dismissing the appeal of chapter 13 debtor Luis Bullard for lack of jurisdiction.1 The Court held that the order of the Bankruptcy Court denying confirmation of Bullard’s proposed chapter 13 plan was not a final order from which Bullard could immediately appeal as of right.2 The Court reasoned that, while confirmation of a plan can be said to fix the rights and obligations of the parties in a way that alters the status quo, d

USA, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Debtor, United States bankruptcy court, First Circuit