The South Carolina Property and Casualty Insurance Guaranty Association (the Guaranty) is an unincorporated nonprofit entity created pursuant to the South Carolina Property and Casualty Insurance Guaranty Association Act (the Act). The purpose of the Guaranty is to provide a degree of protection to insureds whose carriers become insolvent. Upon an insurer’s insolvency, the Guaranty assumes the position of the insurer to the extent of the insurer’s obligation relative to covered claim; its liability is derived from that of the insolvent carrier’s liability to the insured.

In a recent opinion, United States Bankruptcy Judge Martin Glenn of the Southern District of New York held that Bankruptcy Courts may enter final default judgments against non-US defendants who fail to respond to a properly served summons and complaint.

In so holding, the Court sanctioned the lender’s motive of purchasing claims to block the plan for the purpose of protecting its own existing claim. The Court held that the relevant bad faith inquiry under 11 USC § 1126(e) requires a motive which is ulterior to the purpose of protecting a creditor’s economic interest in a bankruptcy proceeding.

Background

The lender held a senior lien fully secured by the debtor’s real property. The debtor’s proposed “cramdown” plan sought to extend and modify the terms of the mortgage without the lender’s consent.

Honorable Martin Glenn, United States Bankruptcy Judge in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”) granted Avanti Communications Group PLC’s (“Avanti”) request to recognize the UK court-sanctioned scheme of arrangement and enforce the guarantee releases provided by Avanti’s affiliates on certain debt.[1]

What happens to the a licensee’s right to use a trademark if the licensor files for bankruptcy?

The Year Brick & Mortar Got a Bankruptcy Makeover

What Fashion and Luxury Goods Companies Need to Know About Restructuring and Bankruptcy

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Introduction

Understanding the Issues, Causes, Tools for Distressed Retail Situations & What Lies Ahead for 2018

In deciding whether to afford administrative priority to claims arising from goods shipped shortly before a debtor’s bankruptcy filing, the Third Circuit, in In re World Imports Ltd., 862 F.3d 338 (3d Cir. July 10, 2017), interpreted the term “received” under section 503(b)(9) to mean “physical possession.” In effect, the Third Circuit’s decision provides additional protection to trade vendors that conduct business with distressed debtors.

On September 22, 2017, the First Circuit issued a decision[1] holding that the Official Committee of Unsecured Creditors (the “UCC”) appointed in the Commonwealth of Puerto Rico’s Title III debt adjustment case[2] (the “Title III Case”) has an unrestricted right to i

From the Bankruptcy Court for the District of South Carolina :

In McCall v. Anderson Brothers Bank (In re McCall), Adv. Pro. No. 16-80008-jw (Bankr. D.S.C. 2016), the Honorable John E. Waites held that a creditor did not willfully violate the automatic stay under the particular facts of the case where the creditor initially refused to return a vehicle to the Debtor after she filed a Chapter 13 case and demanded the vehicle’s return.

The Bankruptcy Court for the District of Delaware recently issued a decision that will undoubtedly influence strategies in bankruptcy cases involving plugging and abandonment liabilities. The court’s ruling in Venoco, LLC v. City of Beverly Hills illuminates the Bankruptcy Code’s rehabilitative purposes by explaining that financial harm, without more, is not sufficient to enjoin a debtor’s actions.

What Happened