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    Delaware Bankruptcy Court sheds light on the common interest doctrine preventing the waiver of privileged communications
    2010-12-01

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

    CASE SNAPSHOT

    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
    Trustee’s use of strong-arm powers limited where state ucc gives priority to the lender that perfects its lien post-petition
    2010-12-01

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

    CASE SNAPSHOT

    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
    Omission of plat in a mortgage renders its recording a nullity, provides no notice to the trustee and subjects the mortgage to avoidance
    2010-12-01

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

    CASE SNAPSHOT

    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
    Fresh start, not so fresh: courts hold that environmental liabilities survive chapter 11 reorganization
    2010-12-01

    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
    Consideration of a TRAC clause under the UCC and economic realities required to determine if equipment leases are true leases or disguised financing
    2010-12-01

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

    CASE SNAPSHOT

    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
    Compensation distributions triggered by events outside the debtor’s control are property of the estate and subject to avoidance
    2010-12-01

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

    CASE SNAPSHOT

    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
    Lehman reaches settlement with perpetual in Dante case
    2010-11-30

    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
    Bloodhorse.com reports that battle between NYRA, OTBS resurfaces
    2010-12-08

    With the future of the New York City Off Track Betting Corp. up in the air, the New York Senate returned to the Capitol Tuesday, Dec. 7, to find itself in the middle of a long-standing battle between tracks and OTB corporations in the state.

    Officials at the NYCOTB, which is in Chapter 9 bankruptcy protection, vowed to shut down the stateowned betting giant at midnight Dec. 7 if the Senate does not pass a reorganization bill already approved last week by the Assembly.

    Filed under:
    USA, New York, Insolvency & Restructuring, Media & Entertainment, Duane Morris LLP, Bankruptcy, Gambling, Bailout, US Republican Party, US Democratic Party, Chief executive officer
    Location:
    USA
    Firm:
    Duane Morris LLP
    Protection of collateral of counterparties to uncleared swaps; treatment of securities in a portfolio margining account in a commodity broker bankruptcy
    2010-12-06

    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
    2010-12-03

    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

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