On August 9, 2011, the United States Court of Appeals for the Fifth Circuit held that a non-insider's debt claim can be recharacterized as equity in Grossman v. Lothian Oil Inc. (In re Lothian Oil, Inc.).2 The Fifth Circuit, in reversing the district court, held that: (i) there is no per se rule limiting to insiders the recharacterization of debt claims as equity and (ii) non-insider debt claims may be recharacterized as equity under section 502(b) of the Bankruptcy Code.
Introduction
In two recent decisions in the General Growth Properties, Inc., et al. chapter 11 cases, the United States Bankruptcy Court for the Southern District of New York upheld certain loan provisions which provided for an automatic event of default and imposition of a default rate of interest upon the commencement of a bankruptcy case, and held that certain creditors were entitled to receive postpetition interest at the contractual default rate. General Growth Properties, Inc. and its affiliated debtors own, develop, and operate regional shopping malls across the United States.
Governor Corbett is almost certain to sign legislation that places a Receiver in charge of Harrisburg‟s finances after the House agreed to Senate changes and sent the bill to the Governor‟s desk.
The General Assembly acted despite a recent move by Harrisburg City Council to file for bankruptcy. The architects of the Harrisburg „Receiver‟ plan, State Rep. Glen Grell, R-Cumberland and State Senator Jeff Piccola, R-Dauphin, both maintain that the bankruptcy move was illegal.
A continuing theme of this blog series on Madoff has been the perplexing and inconsistent manner, virtually to the point of arbitrariness and unfairness, with which Trustee Irving Picard has handled charities that invested with Madoff. Installment
Introduction
The Bankruptcy Court held a status conference in the Harrisburg Chapter 9 earlier today. The principal purpose of the hearing was for the court to set a schedule for objections to Harrisburg’s chapter 9 eligibility. Objections to eligibility and supporting briefs are to be filed by October 28, a response by the City Council is to be filed by November 7, and replies on behalf of the objecting parties are to be filed by November 12. The judge made it clear that the City Council has the burden of showing eligibility. Th
In re Provo Gateway, LLC (Bankr. D. Utah) Case no. 11-31259
In re Gelt Financial Corporation (Bankr. E.D. Pa.) Case no. 11-15827
In re East Coast Abatement Co. Inc. (Bankr. E.D. Va.) Case no. 11-73560