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

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

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

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

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
Post-confirmation cramdown interest rate: ‘market formula’ applies to oversecured

In re SJT Ventures, LLC, 2010 WL 3342206 (Bankr. N.D. Texas 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Limited liability company, Default (finance), Secured creditor, Commercial mortgage, Secured loan, Title 11 of the US Code, United States bankruptcy court
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Undersecured mortgage lenders may include fees & costs in arrearage cure amount of chapter 13 debtor under section 1322(e)

Deutsche Bank National Trust Co. v. Tucker, No. 09-5867 (6th Cir. 2010)

CASE SNAPSHOT

In resolving a conflict within the Sixth Circuit, the Court of Appeals has held that chapter 13 debtors who propose in their plan of reorganization to cure the arrearage on their mortgage loan are required to pay all fees and costs required by the mortgage and non-bankruptcy law, even if the mortgage lender is undersecured. Put another way, mortgage lenders may include such fees and costs in their proofs of claim.

FACTUAL BACKGROUND

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Debtor, Statutory interpretation, Mortgage loan, Remand (court procedure), US Congress, Deutsche Bank, United States bankruptcy court, Sixth Circuit
Authors:
Barbara K. Hager
Location:
USA
Firm:
Reed Smith LLP
A perfect storm: retailers in bankruptcy in the post-BAPCPA economic downturn - part II

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
Credit bidding cannot be prohibited – the recent decision in River Road Hotel Partners

In re River Road Hotel Partners, LLC, et al., Case No. 09-B-30029 (Bankr. N.D. Ill. 2010)

CASE SNAPSHOT

Filed under:
USA, Illinois, Insolvency & Restructuring, Leisure & Tourism, Litigation, Reed Smith LLP, Bankruptcy, Credit (finance), Debtor, Federal Reporter, Limited liability company, Default (finance), Secured loan, Federal Deposit Insurance Corporation (USA), US District Court for Northern District of Illinois
Authors:
Stephen T Bobo
Location:
USA
Firm:
Reed Smith LLP
A proposed plan’s voting stock allocation causes an incurable change-of-control breach and impermissible reinstatement of secured debt

In re Young Broadcasting, Inc., et al., 430 B.R. 99 (Bankr. S.D.N.Y. 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Share (finance), Shareholder, Credit (finance), Debtor, Unsecured debt, Breach of contract, Board of directors, Interest, Debt, Voting, Default (finance), Secured loan, Pro rata, US District Court for the Southern District of New York
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
‘Ordinary course of business’ enables supplier to keep payments in a preference action

Burtch v. Detroit Forming, Inc. (In re Archway Cookies), 435 B.R. 234 (Bankr. D. Del. 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Safe harbor (law), Debt, Trustee, United States bankruptcy court
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP