Delaware Bankruptcy Court sheds light on the common interest doctrine preventing the waiver of privileged communications

In re Leslie Controls, Inc., (Bankr. D. Del., Case No. 10-12199, 2010)

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Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Waiver, Interest, Work-product doctrine, Attorney-client privilege, Discovery, Liability (financial accounting), Delaware Supreme Court, United States bankruptcy court
Authors:
Brian M. Rostocki
Location:
USA
Firm:
Reed Smith LLP
Lehman reaches settlement with perpetual in Dante case

On November 17th, Lehman Brothers Special Financing Inc. ("LBSF") and its official unsecured creditors' committee filed a joint motion to stay BNY Corporate Trustee Services Limited's ("BNY") appeal for 90 days in the "Dante" matter, pending final settlement of the dispute between LBSF and Perpetual Trustee Company Limited ("Perpetual").

Filed under:
USA, Insolvency & Restructuring, Litigation, Orrick, Herrington & Sutcliffe LLP, Bankruptcy, Unsecured debt, Collateral (finance), Swap (finance), Lehman Brothers, Trustee, United States bankruptcy court
Authors:
Nikiforos Mathews , Jim Croke , William S. Haft , Peter C. Manbeck , Al B. Sawyers
Location:
USA
Firm:
Orrick, Herrington & Sutcliffe LLP
Trustee’s use of strong-arm powers limited where state ucc gives priority to the lender that perfects its lien post-petition

Sovereign Bank v Hepner (In re Roser), 613 F.3d 1240 (10th Cir. 2010).

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Conflict of laws, Debtor, Collateral (finance), Interest, Secured loan, Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, United States bankruptcy court, Tenth Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Compensation distributions triggered by events outside the debtor’s control are property of the estate and subject to avoidance

Parks v. Dittmar (In re Dittmar), 618 F.3d 1199 (10th Cir. 2010)

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Federal Reporter, Option (finance), Initial public offerings, Dissenting opinion, Bankruptcy Appellate Panel, Tenth Circuit, Circuit court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Fresh start, not so fresh: courts hold that environmental liabilities survive chapter 11 reorganization

Introduction

Filed under:
USA, Environment & Climate Change, Insolvency & Restructuring, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Contamination, Pollution, Bankruptcy, Debtor, Injunction, Breach of contract, Liability (financial accounting), Bankruptcy discharge, Supreme Court of the United States, Third Circuit, Sixth Circuit
Authors:
Gaines Gwathmey , Brian S. Hermann , Arina Popova
Location:
USA
Firm:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
Omission of plat in a mortgage renders its recording a nullity, provides no notice to the trustee and subjects the mortgage to avoidance

Wells Fargo Home Mortgage, Inc. v Richardson (In re Brandt), 434 B.R. 493 (W.D. Mich. 2010)

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Mortgage loan, Conveyancing, Constructive notice, Wells Fargo, Trustee
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP
Consideration of a TRAC clause under the UCC and economic realities required to determine if equipment leases are true leases or disguised financing

Hitchin Post Steak Co v General Electric Capital Corporation (In re HP Distribution, LLP), 436 B.R. 679 (Bankr. D. Kan. 2010)

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The United States Bankruptcy Court for the District of Kansas considered whether commercial vehicle leases that contained Terminal Rental Adjustment Clauses (or TRAC provisions) were true leases under Section 365 of the Bankruptcy Code or, instead, disguised financing transactions. The court held that the TRAC leases were true leases that must be either assumed or assigned pursuant to the terms of Section 365.

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Consideration, Liquidation, Bright-line rule, Uniform Commercial Code (USA), United States bankruptcy court
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Protection of collateral of counterparties to uncleared swaps; treatment of securities in a portfolio margining account in a commodity broker bankruptcy

On December 3rd, the CFTC published for public comment proposed requirements for swap dealers and major swap participants with respect to the treatment of collateral posted by their counterparties to margin, guarantee, or secure uncleared swaps. The proposal also would ensure that, for purposes of subchapter IV of chapter 7 of the Bankruptcy Code, securities held in a portfolio margining account that is a futures account constitute "customer property" and owners of such account constitute "customers." Comments should be submitted on or before February 1, 2011.

Filed under:
USA, Derivatives, Insolvency & Restructuring, Winston & Strawn LLP, Bankruptcy, Collateral (finance), Security (finance), Swap (finance), Futures contract, Commodity broker, Margin (finance), Broker-dealer, Commodity Futures Trading Commission (USA)
Location:
USA
Firm:
Winston & Strawn LLP
A perfect storm: retailers in bankruptcy in the post-BAPCPA economic downturn - part II

In the first part of this article, we considered the effect of section 365(d)(4) and other Bankruptcy Code sections on retailer debtors and their respective landlords, as well as on how retailer debtors can utilize the holiday sales season to implement a successful reorganization.

Filed under:
USA, Insolvency & Restructuring, Cadwalader Wickersham & Taft LLP, Bankruptcy, Retail, Debtor, Debt, Liquidation, Title 11 of the US Code, United States bankruptcy court, Seventh Circuit, US District Court for Northern District of Texas
Location:
USA
Firm:
Cadwalader Wickersham & Taft LLP
Credit bidding cannot be prohibited – the recent decision in River Road Hotel Partners

In re River Road Hotel Partners, LLC, et al., Case No. 09-B-30029 (Bankr. N.D. Ill. 2010)

CASE SNAPSHOT

Filed under:
USA, Illinois, Insolvency & Restructuring, Leisure & Tourism, Litigation, Reed Smith LLP, Bankruptcy, Credit (finance), Debtor, Federal Reporter, Limited liability company, Default (finance), Secured loan, Federal Deposit Insurance Corporation (USA), US District Court for Northern District of Illinois
Authors:
Stephen T Bobo
Location:
USA
Firm:
Reed Smith LLP