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.
As part of the Scottish Government’s aim of introducing a “Financial Health Service” in Scotland, the Bankruptcy and Debt Advice (Scotland) Act 2014 will this year bring into effect some of the widest reaching changes to the law on personal insolvency seen in the last five years. We set out below a brief guide to the main changes, as follows.
1) Business DAS – introduced in December 2014
The Third Circuit Rules in Favor of the Bankruptcy Estate Creating a Further Circuit Split
Questions Standing of Indenture Trustees to Pursue Fraudulent Conveyance Claims
The Bankruptcy Code definition of “intellectual property” does not explicitly include “trademarks.”1 This has led to trademark licensees losing their rights to use the trademark upon rejection of the license in bankruptcy.
Introduction
Almost every significant bankruptcy case eventually involves preference demands and litigation. Around this abundance of litigation developed a significant body of jurisprudence, to which Judge Sean Lane of the Southern District of New York Bankruptcy Court recently added in clarifying the ordinary course of business preference defense.
In recent years, second lien financings have increased in popularity. Senior creditors rely on intercreditor agreements to protect their interests by limiting the rights that junior lien holders would otherwise enjoy as secured creditors through either lien subordination, payment subordination, or both. Lien subordination requires the turnover to first lien creditors of proceeds of shared collateral until the first lien holders are paid in full.
Case Summary
This case presents a common scenario and dynamic that a party involved with a distressed bank holding company may have seen in the last several years.
Many indentures contain “make-whole provisions,” which protect a noteholder’s right to receive bargained-for interest payments by requiring compensation for lost interest when accrued principal and interest are paid early. Make-whole provisions permit a borrower to redeem or repay notes before maturity, but require the borrower to make a payment that is calculated to compensate noteholders for a loss of expected interest payments.