Introduction
The interrelationship between an assignment for benefit of creditors (“ABC”) proceeding and an involuntary bankruptcy filing, for the same debtor, is governed by various portions of the Bankruptcy Code.
But that relationship remains ill-defined, nonetheless.
What follows is an attempt to summarize a bankruptcy court opinion dealing with that relationship. And here is two of its main conclusions:
On June 21, 2022, Congress and the President (i) extend the $7.5 million debt limit for Subchapter V eligibility, and (ii) adjust other Subchapter V rules.[Fn. 1]
One of the adjustments is this:
“Without these [mediated] settlements, there is no Plan.”
- From Opinion on Plan confirmation, In re Boy Scouts of America, Case No. 20-10343, Delaware Bankruptcy Court, Doc. 10136, at 80 (issued July 29, 2022).
The Boy Scouts of America bankruptcy has achieved a milestone: on July 29, 2022, the Bankruptcy Court issues a 281-page Opinion on confirmation of Debtor’s Plan of Reorganization. The Opinion is generally favorable toward Plan confirmation but identifies a number of issues remaining to be resolved.
“[T]he bankruptcy court— . . . (2) shall excuse compliance . . . if . . . an assignee for the benefit of the debtor’s creditors . . . was appointed or took possession more than 120 days before the date of the filing of the petition, unless . . . necessary to prevent fraud or injustice.”
11 U.S.C. § 543(d)(2) (emphasis added).[Fn. 1]
On August 15, 2022, the Tenth Circuit Court of Appeals reinstates its prior In re Hammons opinion, which deals with remedies for unconstitutionally lower quarterly fees charged to bankruptcy debtors in Alabama and North Carolina.[Fn. 1]
Opinion Points
Check out these points from the Hammons opinion:
Congress must be allowed“to fashion a modern bankruptcy system which places the basic rudiments of the bankruptcy process in the hands of an expert equitable tribunal.”
—from Granfinanciera, S.A. v. Nordberg, 492 U.S. 33, 94 (1989) (Blackmun dissent, emphasis added).
Justice Blackmun had a point—back in 1989—that remains true today:
When parties contract for arbitration of their disputes:
簡介
最近在Re Carnival Group International Holdings Ltd [2022] HKCFI 2668一案中，本所代表呈請人成功申請將嘉年華國際控股有限公司（「該公司」）清盤。該公司是一家在香港聯合交易所（「聯交所」）上市的百慕達公司。在本案中，法院澄清及確認其將外國公司清盤的司法管轄權。此外，法院命令就訟費問題將該公司董事（「董事」）加入為被告人，因此日後假如公司在欠缺理據的情況下反對清盤呈請，董事或須就呈請人及支持清盤的債權人的訟費承擔個人責任。
背景
該公司在百慕達註冊成立，並根據香港前《公司條例》第XI部註冊為海外公司，其股份在聯交所上市，股份代號 996。該公司是一家投資控股公司，持有在香港、中國內地及英屬維爾京群島註冊成立的附屬公司（統稱「該集團」）。該集團主要在中國內地經營主題式休閒及消費業務。