Good afternoon.
Following are this week’s summaries of the Court of Appeal for Ontario for the week of March 21, 2022.
Areas of law covered in the cases this week included bankruptcy and insolvency (setting aside discharge from bankruptcy and after-acquired property), municipal liability for building inspections, two child protection decisions, guarantees and a partnership dispute.
Wishing everyone an enjoyable weekend.
Table of Contents
Civil Decisions
It begins with an awkward mouthful. Outside a bankruptcy brief, is “unimpairment” even a word? (No, per Merriam-Webster.) Inside Chapter 11, it’s much more: a trend.
Want to refinance your bonds cheaply? Are you an otherwise sound and solvent business, forced into bankruptcy by a massive fire (PG&E), persistent low commodity pricing (Ultra Petroleum), or a pandemic (Hertz, whose airport rental business was shuttered in 2020 by COVID-19)?
Or would you just prefer to boost your stock value by lowering your coupon?
Lee Siu Fung Siegfried[2021] 5 HKLRD 627
In January 2001, a bankruptcy petition was presented against Mr. Lee Siu Fung Siegfried in respect of a HK$322 million debt arising out of a guarantee given by him. In or around September 2016, the trustees in bankruptcy obtained an order for the private examination of Mr. Lee and the Applicants, who are the younger brother and son of Mr. Lee.
Introduction:
Re Wang Huimin[2021] HKCFI 3472
The Bankrupt, Madam Wang, is a Chinese citizen and holds a PRC resident identity card. She has been residing in Shanghai since she was born. The Petitioner is Madam Wang’s younger brother.
Good afternoon.
Following are our summaries of the civil decisions of the Court of Appeal for Ontario for the week of March 14, 2022.
Topics covered this week included property of a bankrupt (beneficial interest in trust property), testamentary capacity and extensions of time to perfect appeals.
Wishing everyone an enjoyable weekend.
Table of Contents
Civil Decisions
O Exit Finance ou, em português, Financiamento para Saída, consiste no financiamento concedido a uma empresa em recuperação judicial ou extrajudicial que permite à mesma pagar os seus credores – tanto os concursais quanto uma parte ou todos os extraconcursais – e com isso encerrar a sua recuperação, voltando a atuar no mercado sem a mancha da insolvência. Uma de suas principais características é que, ao adotá-lo, a empresa recuperada apresente índices financeiros compatíveis com os de suas melhores concorrentes.
Agricultural economists have long warned of a looming farm crisis. However, for the most part, they have been wrong. In 2021, nationwide Chapter 12 family farmer bankruptcy filings were at second lowest level since Chapter 12 was enacted in 1987. The low level of Chapter 12 filings is all the more surprising given that Congress more than doubled the debt limit for Chapter 12 eligibility (to $10 million) in 2019.
In a recent decision,1 the United States Bankruptcy Appellate Panel of the 9th Circuit clarified an important step that construction lienholders must take to perfect their liens when the debtor has filed a bankruptcy petition before the lienholder files a foreclosure lawsuit.
A bankruptcy court’s recent decision in Bailey Tool & Mfg. Co., et al. v. Republic Bus. Credit (In re Bailey Tool & Mfg. Co.), Adv. No. 16-03025-SGJ (Bankr. N.D. Tex. Dec. 23, 2021) serves as a reminder for lenders that they should avoid certain actions when dealing with distressed borrowers. Specifically, in Bailey, a bankruptcy judge found a lender squarely at fault for its borrower’s bankruptcy and subsequent liquidation, and held the lender liable to the borrower’s bankruptcy estate for various breach of contract, tort, and bankruptcy claims.