If you are a licensee under a trademark license, what happens to your license if the licensor winds up in the Bankruptcy Court? A recent United States Circuit Court case demonstrates how uncertain the answer is at this time.

Some bankruptcy basics

Ensequence, Inc., a New York, NY based provider of tools for creating interactive television advertising, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 18-10182). Ensequence’s Petition estimates it assets to be between $1–$10 million and its liabilities to be between $10–$50 million.

Patriot National, Inc., a Fort Lauderdale, FL-based provider of technology and outsourcing solutions to the insurance industry, has, along with eighteen affiliates and subsidiaries, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-10189).

Nearly every year, there are changes to the Federal Rules of Bankruptcy Procedure. 2017 was no exception, and new rules went into effect on December 1, 2017. Creditors should be aware of the new timeframe for filing claims and new relief that can be sought in Chapter 12 and Chapter 13 plans. Below is a summary of some of the new rule changes.

Rule 3002—Filing a Proof of Claim or Interest

PES Holdings, LLC (d/b/a Philadelphia Energy Solutions) has, along with eight of its subsidiaries and affiliates, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-10122). Headquartered in Philadelphia, PA, PES operates the largest oil refining complex on the East Coast and is the tenth largest refiner in the United States.

Continuing low interest rates and generally improved economic conditions in the U.S. and worldwide during 2017 have reduced financial distress and the need for business bankruptcies in most sectors. However, out-of-court financial restructurings and Chapter 11 bankruptcies will continue in 2018 due to significant market changes in the energy, retail and health care industries that have developed over the past several years.

On January 12, 2018, an involuntary chapter 11 petition was filed against Oak HRC New Castle, LLC, a rehabilitation facility located in Wilmington, Delaware, and health care business (as defined in 11 U.S.C. 101(27A)). The petitioners, each asserting trade claims, are: Healthcare Services Group, Inc.

First River Energy, LLC, a midstream energy company based in San Antonio, TX, has filed a petition for relief under Chapter 11. in the Bankruptcy Court for the District of Delaware (Case No. 18-10080).

The District Court of Appeal of the State of Florida, Fourth District, recently reversed a trial court’s order denying two borrowers’ request for attorney’s fees and costs on judicial estoppel grounds.

In so ruling, the Fourth DCA held that the trial court improperly relied on a Fifth Circuit case and failed to apply Florida’s judicial estoppel doctrine when it concluded that the borrowers’ failure to disclose their attorney’s fee claim in their Chapter 11 bankruptcy schedules barred the fee claim.

Hobbico, Inc. , a Chicago-based distributor of radio-control and general hobby products, along with seven of its affiliates, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-10055).