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    California Supreme Court resolves Court of Appeal split, holding that Section 2010 of the California Corporations Code -- California's "Survival Statute" -- does not apply to foreign corporations
    2013-02-27

    In Greb v. Diamond Int’l Corp., 2013 WL 628328 (Cal. Feb. 21, 2013), the California Supreme Court unequivocally and unanimously laid to rest the assertion that dissolved foreign corporations may be sued in California after the time of the statute of limitations provided by the laws under which the foreign corporations were incorporated.

    Filed under:
    USA, California, Company & Commercial, Insolvency & Restructuring, Litigation, Sheppard Mullin Richter & Hampton LLP, California Supreme Court, California courts of appeal, California superior courts
    Authors:
    John P. Stigi III
    Location:
    USA
    Firm:
    Sheppard Mullin Richter & Hampton LLP
    Board resignations and bankruptcy
    2012-12-12

    Key Considerations When Determining Whether to Resign from a Board in Advance of a Bankruptcy Filing

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Arnold & Porter, Bankruptcy, Board of directors
    Authors:
    Dan Grunfeld , Marc S. Cohen , Vincent A. Sama
    Location:
    USA
    Firm:
    Arnold & Porter
    Taking a security interest in a closely held business
    2012-11-01

    If a loan or extension of credit requires collateral, banks prefer collateral that is readily marketable rather than taking a security interest in a closely-held business.  Occasionally, the only collateral that is available or that the borrower can offer is corporate stock that is not traded on a public market, an interest in a limited liability company ("LLC") or a partnership interest.  It is common for closely-held business entities to prohibit an assignment of an owner's interest or require as a condition to an assignment the consent of the other owners of the entity.

    Filed under:
    USA, Arkansas, Banking, Company & Commercial, Insolvency & Restructuring, Litigation, Sherman & Howard LLC, Legal personality, Debtor, Collateral (finance), Limited liability company, Securities Act 1933 (USA)
    Location:
    USA
    Firm:
    Sherman & Howard LLC
    Don’t place blind reliance on boilerplate contract provisions
    2012-10-18

    After putting all of the specific deal points into a new contract, you are just about finished.  All you have to do now is add in the “Miscellaneous” section with all of your boilerplate provisions like force majeure, choice of law and a few others.  You have drafted so many contracts for so many years that you do not even know where some of the

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Burns & Levinson LLP
    Authors:
    Shepard Davidson
    Location:
    USA
    Firm:
    Burns & Levinson LLP
    New Illinois legislation may help curb fraudulent lien filings by disgruntled debtors
    2012-10-12

    Disgruntled debtors seeking to evade their obligations by filing fraudulent liens soon face new threats under Illinois law. On July 25, 2012, Governor Patrick Quinn approved and signed Senate Bill 1692, which is intended to provide additional remedies for wrongfully filed UCC liens.5 Senate Bill 1692 becomes effective January 1, 2013 and will be incorporated into section nine of the Illinois Uniform Commercial Code. 

    Filed under:
    USA, Illinois, Company & Commercial, Insolvency & Restructuring, Litigation, Dykema Gossett PLLC, Debtor, Fraud, Uniform Commercial Code (USA)
    Authors:
    Courtney M. Ofosu
    Location:
    USA
    Firm:
    Dykema Gossett PLLC
    “An intentionally tough law”: employment rights lost by “responsibly connected” individuals when their PACA-licensed companies became insolvent
    2012-10-06

    The Perishable Agricultural Commodities Act of 1930 (“PACA”)1 is deservedly renowned for its provisions creating a statutory trust on sold perishable commodities, and the products and revenues thereof. See 7 U.S.C. §499e. The PACA statutory trust can have dramatic consequences in the cases of bankrupt produce buyers; produce sellers often are paid in full, ahead of secured creditors holding liens on all inventory and accounts receivable. That is a story often told.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Davis Wright Tremaine LLP, Bankruptcy, Shareholder, Accounts receivable, Commodity, US Department of Agriculture
    Authors:
    Craig Miller , Peter Isola
    Location:
    USA
    Firm:
    Davis Wright Tremaine LLP
    Second Circuit affirms dismissal of debtor’s attempted subordination of former corporate parent’s claim
    2012-09-21

    The U.S. Court of Appeals for the Second Circuit recently dismissed a corporate debtor’s attempt to subordinate its former corporate parent’s contract damage claim on the ground that it was a securities fraud claim. CIT Group Inc. v. Tyco Int’l., Inc. (In re CIT Group Inc.), 2012 WL 3854887 (2d Cir. Sept. 6, 2012), affirming 460 B.R. 633 (Bankr. S.D.N.Y. 2011).

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Debtor, Securities fraud, Second Circuit
    Authors:
    Michael L. Cook
    Location:
    USA
    Firm:
    Schulte Roth & Zabel LLP
    Default by a customer: knowledge is power
    2012-08-31

    This article is Part Three in a seven-part series on how to structure sales and what to do when your customer fails to pay. You can find previous article in this series here: Structuring Sales to Ensure Payment, Signs of Trouble Before Payment Default. Please subscribe to this blog by entering your email in the box on the left, or check back weekly for additional articles in the series.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Porter Wright Morris & Arthur LLP, Bankruptcy, Accounts receivable, Title 11 of the US Code
    Authors:
    Polly J. Harris
    Location:
    USA
    Firm:
    Porter Wright Morris & Arthur LLP
    What to consider when non-payment leads to litigation
    2012-09-06

    This article is Part Four in a seven-part series on how to structure sales and what to do when your customer fails to pay.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Porter Wright Morris & Arthur LLP
    Authors:
    Polly J. Harris
    Location:
    USA
    Firm:
    Porter Wright Morris & Arthur LLP
    Signs of trouble before payment default
    2012-08-23

    This article is Part Two in a seven-part series on how to structure sales and what to do when your customer fails to pay. You can find Part One of this series here: Structuring Sales to Ensure Payment. Please subscribe to this blog by entering your email in the box on the left, or check back weekly for additional articles in the series. 

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Porter Wright Morris & Arthur LLP
    Authors:
    Polly J. Harris
    Location:
    USA
    Firm:
    Porter Wright Morris & Arthur LLP

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