Recent caselaw demonstrates that there is a current judicial disagreement over whether the Bankruptcy Code will permit a cramdown in a jointly-administered bankruptcy case when a consenting class exists for only one of the debtors. This implicates the important issue of de facto substantive consolidation and the potential risks it poses to unsecured creditors.
On March 5, 2018, the Supreme Court issued a unanimous decision in U.S. Bank National Ass’n ex rel. CWCapital Asset Management LLC v.
The Bankruptcy Code provides bankruptcy trustees, debtors, and creditor committees with “avoidance powers” that allow them to set aside and recover certain transfers that a debtor made before filing for bankruptcy.[1] These avoidance powers are, however, limited by a number of exceptions enumerated in the Bankruptcy Code, including the securities safe harbor at § 546(e). Section 546(e) protects from avoidance any transfer “made by or to (or for the benefit of) . . .
Under newly issued guidance, the IRS has made it easier for many tax-exempt organizations to restructure.
The IRS will now continue to recognize as exempt, those organizations that:
• change their structure from an unincorporated association to a corporation;
• reincorporate from one state to another;
Introduction
On September 22, 2017, the First Circuit Court of Appeals held that § 1109(b) of the Bankruptcy Code (the “Code”) provides a creditors’ committee with an “unconditional right to intervene” in an adversary proceeding.[1] In reaching this conclusion, the court reversed the District Court for the District of Puerto Rico’s order denying an intervention motion and distinguished its own precedent, on which the District Court had relied. This decision further bolsters the right of creditors’ com
It is fair to say that the insolvency of Carillion has sent shockwaves through the construction industry. While this may be the catalyst for change, insolvency has unfortunately been a risk which has been realised all too often. Looking at the current position, we set out the top ten issues that employers, professionals and the supply chain should consider in the event of main contractor insolvency.
FINANCIAL SERVICES AND BREXIT BRODIES BREXIT GUIDE. www.brodies.com What might Brexit mean for financial services? On 29 March 2017 the UK’s Article 50 Notice was delivered to the European Council in Brussels, triggering the formal process for the UK’s exit from the EU. Immediately following delivery of the notice, the UK Government’s Department for Exiting the European Union issued a White Paper on the Great Repeal Bill (entitled “Legislating for the UK’s withdrawal from the European Union”). The paper focuses on the legal changes that will result from the UK’s exit from the EU.