The bankruptcy case of Energy Future Holdings (EFH) and its affiliates has already provided the Delaware bankruptcy court occasion to tackle a number of important bankruptcy questions, including the propriety of using tender offers to settle noteholder claims during the pendency of the case.

A recent Delaware District Court decision concerning an appeal of a bankruptcy settlement clearly provides support for the use of tender offers or other exchange, or settlement mechanics permitted under applicable federal securities laws prior to and outside a plan of reorganization. In essence, this decision permits debtors to utilize exchange offers to repurchase outstanding securities at a discount, or obtain more favorable terms during a bankruptcy proceeding and prior to confirmation of a plan of reorganization.

Case Summary

The Second Circuit in Krys v. Farnum Place (In re Fairfield Sentry Ltd.)¹ denied a petition for rehearing or rehearing en banc by Appellee Farnum Place, LLC (Farnum), a hedge fund that sought to protect its purchase of a $230 million claim against the bankruptcy estate of Bernard L.

* This article was first published by INSOL International on March 16, 2015.

Upholds Extraterritorial Application of 11 U.S.C. § 362 Automatic Stay

Summary

The recent judgment of Mrs Justice Proudman in Plaza BV –v- The Law Debenture Trust Corporation¹  illustrates and extends a line of authorities in which the English courts have sought to narrow the scope of the mandatory application of Article 2 of the Brussels Regulation 44/2001.  These cases are a reaction to the broad interpretation of the applicability and effect of Article 2 set out in the ECJ's decision in Owusu –v- Jackson² , and attempt to confine the influence of that decision. 

The Supreme Court of the United States declined[1] to review the decision of the United States Court of Appeals for the Fourth Circuit in Jaffé v.

The published judgment in Abbey Forwarding[1] will not make for comfortable reading for HMRC. Having instigated the winding up of a profitable business, which led to the dismissal of 23 employees, and accused  innocent directors of fraud, HMRC then withdrew all assessments made against the company and attempted to avoid undertakings it had given to the court when seeking the original winding up order.

Introduction

In the recent case of Re LDK Solar Co Ltd,⁽¹⁾Justice Lam considered the approach that the court should take in deciding whether to invoke its jurisdiction to approve an arrangement or compromise between a foreign company and its creditors or members.

The Third Circuit Rules in Favor of the Bankruptcy Estate Creating a Further Circuit Split