On January 5, 2015, HM Treasury published the Bank Recovery and Resolution Order 2014 (“BRRO”) and the Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (“BBSO”). The Banking Act 2009 (Restriction of Special Bail-in Provision, etc.) Order 2014 and the Banking Act 2009 (Mandatory Compensation Arrangements following Bail-in) Regulations 2014 were published in December 2014.
On December 19, 2014, the UK Insolvency Service reported that two former directors of Connaught Asset Management, Nigel Walter and Michael Anthony Davies, have both been disqualified from controlling or managing a company for a period of 9 and 7 years respectively. The former directors allowed the misuse of up to £106m of investor money by failing to review the progress on loans made with monies borrowed from funds and not ensuring the money was repaid to the fund following loan completion.
The press release is available at:
Section 1322(c)(1) of the Bankruptcy Code1 allows debtors to cure defaults and reinstate a
mortgage on their principal residence "until such residence is sold at a foreclosure sale that is
conducted in accordance with applicable nonbankruptcy law."2
Like many provisions of the
Bankruptcy Code, this one appears fairly straightforward at first glance; a debtor has the right to
cure and reinstate a home mortgage until the property is sold at a foreclosure sale.
Who Will Think of the Tenants: Split in Authority Regarding the Interplay Between Bankruptcy Code Sections 363(f) and 365(h)(1)(A)
Dealing a major blow to the trustee’s efforts to recover fraudulent transfers on behalf of the bankruptcy estate of the company run by Bernard Madoff, Judge Jed S. Rakoff of the United States District Court for the Southern District of New York held in SIPC v. Bernard L. Madoff Investment Securities LLC1 that the Bankruptcy Code cannot be used to recover fraudulent transfers of funds that occur entirely outside the United States.
Facing the imminent bankruptcy of the federal Highway Trust Fund (the “HTF”) and the specter of delays and reductions in payments from the HTF to the States, the US Congress last week passed the Highway and Transportation Funding Act of 2014, which extended federal surface transportation programs and funding through May 2015. We summarize below the key elements of the Act.
SHAREHOLDERS ARBITRATION
In a historic USD 50 billion award rendered on July 18,
2014, an Arbitral Tribunal constituted pursuant to the
Energy Charter Treaty held unanimously that the Russian
Federation breached its international obligations under the
Energy Charter Treaty by destroying Yukos Oil Company
and appropriating its assets.
The Tribunal, applying the UNCITRAL Arbitration Rules and sitting in The
ague under the auspices of the Permanent Court of Arbitration ordered the
The recent Eleventh Circuit case of In re Brown, 746 F.3d 1236 (2014) held that 11 U.S.C. § 506(a)(2)'s replacement value standard applies even when a Chapter 7 or 13 debtor surrenders collateral under 11 U.S.C. § 1325(a)(5)(C). The Eleventh Circuit's decision in In re Brown has an important role in how personal property collateral will be valued in Chapter 7 and 13 cases in the Eleventh Circuit and thus its reasoning is important for creditors to understand.
In Crawford v. LVNV Funding, LLC, the Eleventh Circuit became the first federal circuit court of appeals to hold that filing a proof of claim on a time-barred debt in a bankruptcy case violates the Fair Debt Collection Practices Act (“FDCPA”).[1] See No. 13-12389,__ F.3d __, 2014 WL 3361226 (11th Cir.
On June 9, 2014, the United States Supreme Court issued a unanimous opinion in Exec. Benefits Ins. Agency, Inc. v. Arkison (In re Bellingham Ins. Agency, Inc.), 573 U.S. ___ (2014), affirming the Ninth Circuit and holding that, while the Constitution does not permit a bankruptcy court to issue a final ruling in certain circumstances, it is permitted to issue proposed findings of fact and conclusions of law to be reviewed de novo by the district court.