Second Circuit Court of Appeals Decision in GM Cases Casts a Shadow Over Whether Section 363 Sale Orders Insulate Buyers from Debtors’ Product Liability Claims.

I. Introduction

On May 3, 2016 the Italian government approved Law Decree No. 59 (the “Decree”) which, inter alia, provides for new types of security and introduces streamlined in-court and out-of-court enforcement procedures. In addition, the Decree mandates the setting up of a centralized electronic register for security enforcement proceedings and insolvency and pre-insolvency restructuring proceedings. The Decree aims to facilitate financings and secondary debt transactions by reinforcing creditors’ rights and providing more flexible instruments to lenders and borrowers.

Lease Assignment and Guarantees: Case Update and Recap

Summary

En los años de mayor crisis económica se dispararon las compraventas de unidades productivas autónomas en el marco de procedimientos concursales. La Ley Concursal regulaba estas compraventas permitiendo a los adjudicatarios reflotar un negocio minorando las cargas acumuladas hasta el momento del concurso.Uno de los debates en estas situaciones es el alcance de la responsabilidad de la empresa adjudicataria sobre las obligaciones laborales de los trabajadores afectos a la unidad productiva autónoma.

1.                 BACKGROUND

In case of arrangement with creditors under Article 160 of the Bankruptcy Law, Article 182-ter, introduced by Article 146 of D.Lgs. n. 5/2006, expressly states that taxpayers can propose a partial payment of income taxes, but not of VAT and withholding taxes, for which the payment can be only deferred.

Judgment of the Court of Appeal of Porto of February 15, 2016

A credit institution appealed the ruling that approved the agreement claiming that the creditors meeting had allowed the presence and vote by a city council that, in its opinion, did not have such right because it was the holder of 100% of the share capital of the insolvent party.

This ruling resolved an issue originating from a personal and joint and several guarantee granted by two companies to secure the obligations assumed by a Dutch company under a junior financing agreement. In light of the Dutch company's default on one of its payments under that agreement, the creditor companies sued the debtor, and the court issued a resolution ordering the debtor company to pay the amount claimed.