Snippet series
What is the impact on the double Luxco and the Luxembourg share pledges?
Luxembourg bolsters its position for the structurings of international investments with the introduction of new tools for bankruptcy prevention. The existing and new financial collateral arrangements maintain their bankruptcy insolvency proceedings remote status, preserving the benefit and popularity of the double Luxco structure and the related enforcement of Luxembourg share security.
In Purdue Pharma, the U.S. Supreme Court grants certiorari on this question:
The absolute priority rule [Fn. 1] has been a problem for businesses in bankruptcy—for a very long time! The rule dates back to at least 1899, when the U.S. Supreme Court prevents certain shareholder actions “until the interests of unsecured creditors have been preserved.” [Fn. 2]
Since then, the U.S. Supreme Court has followed a long and relatively straight road for the absolute priority rule. And the rule has shown staying power, along that road.
The opinion is In re Legarde, Case No. 22-12184, Eastern Pennsylvania Bankruptcy Court (issued September 14, 2023; Doc. 112).
Facts
Debtor claims Creditor raped her.
Then, Debtor posts stuff about Creditor on the internet.
So, Creditor sues Debtor for defamation, alleging willful and malicious conduct.
Bankruptcy Developments
“courts agree that . . . evaluating, asserting, pursuing, and defending litigation claims . . . can satisfy Section 1182(1)(A)’s requirement of ‘commercial or business activities.’”
This isn’t going to end well.
Looks like our bankruptcy system in these United States is about to take a big hit—to the tune of hundreds of millions of dollars (projected to be around $350 million). And those responsible for creating the debacle are going to skate.
Here’s how.
U.S. Trustee v. John Q. Hammons
Here’s a Bankruptcy Court opinion addressing a no-discharge claim under § 1141(d)(3) against an individual debtor who proposes a liquidating Subchapter V plan:
- RGW Construction, Inc. v. Lucido (In re Lucido), Adv. No. 21-4031, Northern California Bankruptcy Court (issued 9/13/2023, Doc. 113).
The Issue
Bouwen met vertrouwen: insolventie-gerelateerde aandachtspunten voor opdrachtgevers in bouwcontracten
The current market conditions of the construction and project development sector may prompt extra attention to insolvency-related safeguards in building contracts with (sub)contractors. Aiming to mitigate insolvency risks as much as possible, in this blog we discuss a few key considerations for principals to take into account when entering into building contracts with (sub)contractors.
Building with confidence: insolvency-related considerations for principals in building contracts
What rate of interest should a debtor pay under a bankruptcy plan?