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    Protecting investors and shareholders; bankruptcy proceedings
    2013-06-12

    Fundamental restructuring of insolvent companies—in any sector— is a fight for survival.

    Given the global nature of the industry, it is perhaps no surprise that shipping companies and their advisors have sought appropriate court protection to alleviate creditor pressure and a possible break-up of the business where a consensual restructuring is not possible.

    Filed under:
    USA, Insolvency & Restructuring, Shipping & Transport, White & Case, Bankruptcy, Debtor, Debt
    Authors:
    Thomas E Lauria , Christopher P. Frampton , David Manson
    Location:
    USA
    Firm:
    White & Case
    Bankruptcy battle settled, 'Mr. Las Vegas' Wayne Newton moving from sprawling estate
    2013-06-06

     

    LAS VEGAS (AP) - With a bitter legal fight nearly over, "Mr. Las Vegas" Wayne Newton is moving from his estate of 45 years, "Casa de Shenandoah," to another mansion about a mile away.

    The downsizing from a 40-plus acre spread to a $3 million mansion and several adjacent properties totaling 20 acres is taking place this week, the crooner's sister-in-law, Tricia McCrone, and Newton publicist Kevin Sasaki said Wednesday.

    Filed under:
    USA, Insolvency & Restructuring, Munsch Hardt Kopf & Harr PC, Bankruptcy
    Authors:
    Joseph J. Wielebinski
    Location:
    USA
    Firm:
    Munsch Hardt Kopf & Harr PC
    Financial services update, vol. 8, number 21
    2013-06-03
    In a case that should alarm secured creditors who thought they could lawfully exercise their secured creditor rights to foreclose on collateral, the Second Circuit Court of Appeals upheld sanctions against a secured creditor that did exactly that. In 2006, the State Employees Federal Credit Union ("SEFCU") made a loan to Mr. Weber, secured by Mr. Weber’s pick-up truck (the principles in this case apply equally in the corporate finance world). After Mr. Weber defaulted on the loan in 2009, SEFCU legally repossessed Mr.
    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Winston & Strawn LLP, Bankruptcy, Debtor, Collateral (finance), Secured creditor
    Authors:
    Susan Berkwitt
    Location:
    USA
    Firm:
    Winston & Strawn LLP
    SEC reporting after a bankruptcy filing - Part I
    2013-06-06

    Your good client Michael Bluth calls you from the Delaware bankruptcy court. Now that his family’s business, The Bluth Company, has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code and his late nights with DIP lenders and our bankruptcy colleagues have come to a temporary pause, Michael’s ready to turn back to his typical day-to-day job running his business.

    Filed under:
    USA, Capital Markets, Insolvency & Restructuring, Latham & Watkins LLP, Bankruptcy, Form 8-K, US Securities and Exchange Commission, United States bankruptcy court
    Authors:
    Alexander F. Cohen , Kirk A. Davenport II , Joel H. Trotter
    Location:
    USA
    Firm:
    Latham & Watkins LLP
    Detroit emergency manager posits sale of art masterpieces as bankruptcy looms -Van Gogh(ing) once, twice, sold?
    2013-05-30

    Kevyn Orr, the emergency manager appointed by Michigan Governor Rick Snyder to try to resolve the Detroit financial crisis, has effectively replaced the Detroit mayor,

    Filed under:
    USA, Insolvency & Restructuring, Kelley Drye & Warren LLP, Bankruptcy
    Authors:
    Benjamin D. Feder
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Delaware bankruptcy court confirms the validity of plan support agreements
    2013-05-31

    Chapter 11 debtors and sophisticated creditor and/or shareholder constituencies are increasingly using postpetition plan support agreements (sometimes referred to as “lockup” agreements) to set forth prenegotiated terms of a chapter 11 plan prior to the filing of a disclosure statement and a plan with the bankruptcy court. Under such lockup agreements, if the debtor ultimately proposes a chapter 11 plan that includes prenegotiated terms, signatories are typically obligated to vote in favor of the plan.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Shareholder, Debtor, Balance sheet, Title 11 of the US Code, United States bankruptcy court
    Authors:
    George R. Howard , Mark G. Douglas
    Location:
    USA
    Firm:
    Jones Day
    Public right to full disclosure in bankruptcy extends to Rule 2019 statements
    2013-06-01

    One of the hallmarks of the U.S. bankruptcy system is ready access to information concerning any entity that files for bankruptcy protection. The integrity of that system is premised upon the presumption that not only creditors and other interested parties in a bankruptcy case, but also the public at large, should have the ability to examine any document filed with the bankruptcy court.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Debtor, Common law
    Authors:
    Gregory M. Gordon , Mark G. Douglas
    Location:
    USA
    Firm:
    Jones Day
    Chapter 15 petition date “anchors” COMI analysis
    2013-06-01

    October 17, 2013, will mark the eighth anniversary of the enactment of chapter 15 of the U.S. Bankruptcy Code as part of the comprehensive U.S. bankruptcy-law reforms implemented in 2005. Chapter 15, which governs cross-border bankruptcy and insolvency cases, is patterned after the Model Law on Cross-Border Insolvency (the “Model Law”), a framework of legal principles formulated by the United Nations Commission on International Trade Law (“UNCITRAL”) in 1997 to deal with the rapidly expanding volume of international insolvency cases.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Debtor, Liquidation, UNCITRAL, Second Circuit
    Authors:
    Pedro A. Jimenez , Mark G. Douglas
    Location:
    USA
    Firm:
    Jones Day
    Dispute over American Airlines CEO’s $20 million severance may be coming in for a landing
    2013-06-03

    You might think that a company in bankruptcy wouldn’t be able to give its CEO a multi-million-dollar severance payment. 

    But just because a company is in bankruptcy doesn’t necessarily mean it doesn’t have any money – it just means it doesn’t have enough to pay all of its debts, or to function as a continuing concern.  The company may, in fact, have the means to make a rather generous severance payment – like the $20 million American Airlines is proposing to pay its CEO, Tom Horton, as the airline comes out of Chapter 11 and into a merger with US Airways. 

    Filed under:
    USA, Aviation, Company & Commercial, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Zuckerman Spaeder LLP, Bankruptcy, Severance package, American Airlines
    Authors:
    William A. Schreiner, Jr.
    Location:
    USA
    Firm:
    Zuckerman Spaeder LLP
    Involuntary bankruptcy petitions dismissed where alter ego status was disputed
    2013-05-17

    The United States Bankruptcy Court for the Southern District of New York granted motions to dismiss involuntary Chapter 7 petitions filed against TPG Troy LLC and T3 Troy LLC (the Troy Entities). Petitioners filed numerous actions against the Troy Entities in the United States and Europe to recover money they alleged was owed in connection with the default of payment-in-kind and subordinated notes.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Bankruptcy, United States bankruptcy court, US District Court for the Southern District of New York
    Location:
    USA
    Firm:
    Katten Muchin Rosenman LLP

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