The Ninth Circuit Bankruptcy Appellate Panel (BAP) recently held that merely freezing a debtor’s bank account holding funds that had been garnished by a judgment creditor did not violate the automatic stay. This decision was based on the United States Supreme Court’s ruling last year in City of Chicago v. Fulton, holding that retention of repossessed vehicles that were possessed before a bankruptcy was filed did not violate the automatic stay.

1. The Launch

There is a common misconception that lender liability is a thing of the past. However, a recent decision provides a warning to lenders that they can be held liable and face substantial damages if they exercise excessive control over a debtor’s business affairs.

There is a common misconception that lender liability is a thing of the past. However, a recent decision provides a warning to lenders that they can be held liable and face substantial damages if they exercise excessive control over a debtor’s business affairs.

Can the foreclosure of a property tax lien on real estate be avoided as a fraudulent transfer under § 584 of the Bankruptcy Code?

That’s the issue before the District Court, on a bankruptcy appeal, in Duvall v. County of Ontario, New York, Case No. 21-cv-06236 in U.S. District Court, WDNY (issued 11/9/2021).

Courts have gone both ways on the issue.

The Difficulty

Recently, the FDIC reported on legal claims and enforcement proceedings taken by the agency during the financial crisis in the years from 2008 to 2013.

On 25 January 2022, the Financial Conduct Authority (FCA) published draft guidance on how it will approach ‘compromises’ by regulated firms. The guidance is expressed to cover restructuring plans, schemes of arrangement and CVAs.

La CNMV ha publicado un documento con “preguntas y respuestas” que pretende servir de ayuda en la interpretación por las sociedades cotizadas del régimen de operaciones vinculadas tras la reforma introducida por la Ley 5/2021 para la incorporación de la Directiva sobre derechos de los accionistas en las sociedades cotizadas. A continuación, se incluye un resumen de los criterios interpretativos ofrecidos por el organismo supervisor.

Referencias Jurídicas CMS

Artículos de fondo

On 25 January 2022 the FCA published its proposals on companies that seek to manage their liabilities through the use of schemes of arrangement and restructure plans available under company law and voluntary arrangements available in insolvency law.

The FCA are seeking views on these proposals which represent a clear flexing of the FCA’s muscles in the interest of protecting customers and will clearly be of interest to company directors, their accountants and lawyers and insolvency practitioners.

We are happy to present the second issue of our e-magazine – Trilegal Quarterly Roundup.