A recent decision of Justice Watt of the Ontario Court of Appeal definitively answers the question of which appeal procedure must be followed in appeals of Orders made in proceedings constituted under both the Bankruptcy and Insolvency Act (the “BIA”) and the Courts of Justice Act (the “CJA”). Justice Watt’s decision in Business Development Bank of Canada v. Astoria Organic Matters Ltd.

Last week, the United States District Court for the District of Delaware (the “Court”) reversed a 2015 decision by the Delaware Bankruptcy Court (the “Bankruptcy Court”) disallowing the portion of an unsecured claim filed by appellant Wilmington Trust Company (“WTC”) for postpetition attorneys’ fees and costs incurred under an indenture in connection with the In re Tribune Media Co. chapter 11 cases.

Indenture trustees and agents participate in the administration of chapter 11 cases in a number of ways, including by protecting holders’ rights, ensuring compliance with the applicable indenture and other agreements, and fulfilling their duties and responsibilities under applicable law.

Secured creditors can breathe a sigh of relief. We have received word that the Supreme Court of Canada has allowed the appeal from the bench in Canada v. Callidus Capital Corporation (“Callidus”).

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?

Encrypted digital currencies (“cryptocurrencies”),1 particularly Bitcoin, have recently become the target of enormous international speculation and market scrutiny. Some expect cryptocurrency payments and other transactions tracked via distributed ledger technology (“DLT”, of which “blockchain” technology is one example) to be the future of commercial interaction. The theory is that cryptocurrencies could become “the holy grail of commerce – a payment system that would eliminate or minimize the roles of third party intermediaries.”2

An equipment finance company finances the purchase of a truck and registers a purchase-money security interest (a “PMSI”) pursuant to the Personal Property Security Act (Ontario) (the “PPSA”) to protect its interest. The truck breaks down and is taken in for repairs. While the truck is in the shop, the debtor defaults under its lending arrangements with the equipment finance company.