Can an adjudicator have jurisdiction over claims for sums owed to a referring party in liquidation? The TCC has decided in Lonsdale v Bresco that insolvency set-off precludes adjudication of such claims.
Background
Bresco had agreed to perform electrical installation works for Lonsdale in August 2014. Those works were not completed and both parties alleged wrongful termination. Bresco later became insolvent and entered into liquidation in March 2015.
Kraus Carpet Inc., along with five subsidiaries and affiliates, has filed a petition for recognition of a foreign proceeding under chapter 15 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12057).
Bankruptcy remote structures have become common in recent years to attempt to prevent a borrower from filing for Chapter 11. One such structure is commonly referred to as a “golden share.” The “golden share” typically refers to a noneconomic membership interest provided to a lender whose vote would be necessary for the borrower to file Chapter 11.
The Fifth Circuit in InreFranchiseServs.ofN.Am.,Inc., 891 F.3d 198, 209
Open Roads Films, LLC, along with five of its subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12012). The Debtors, based in Los Angeles, California, collectively comprise an independent distributor and licensor of motion pictures.
Creditors often think that an involuntary bankruptcy petition is a great bargaining chip when faced with a recalcitrant debtor. However, the actual filing of an involuntary bankruptcy petition (when that petition is filed in “bad faith”) confers a considerable risk to the petitioning creditors. Recently, the United States Court of Appeals for the Third Circuit issued an opinion that re-emphasizes just how risky bad faith involuntary petitions can be for creditors.
Samuels Jewelers, Inc., a jewelry retailer headquartered in Austin, Texas, with over 100 stores in 22 states, has filed a petition for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 11818).
Noon Mediterranean, Inc. (f/k/a Verts Mediterranean Grill), has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 18-11814).
J&M Sales Inc., along with nine subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-11801). The Debtors, based in Gardena, California, are a discount retailer of brand name apparel and household items, with 344 stores and over 9,800 employees nationwide.
RM Holdco LLC (dba Real Mex Restaurants), along with five subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-11795).
Brookstone Holdings Corp., along with nine subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-11780). Headquartered in Merrimack, New Hampshire, Brookstone is a well-known developer and retailer of wellness, entertainment and travel products.