On May 26, Lehman Brothers Holdings Inc. (LBHI) filed a motion requesting the U.S. Bankruptcy Court for the Southern District of New York to establish August 24 as the deadline for filing proofs of claim against LBHI and its affiliates, and to establish a procedure for such filing, including a required form to be completed online relating to derivatives claims, and a new proof of claim form specific to this case.

On May 26, 2009, Lehman Brothers Holdings Inc. and its affiliated U.S. chapter 11 debtors (“Lehman” or the “U.S. Debtors”) filed a motion (“Motion”) requesting the U.S. Bankruptcy Court (“Bankruptcy Court”) to set August 24, 2009 at 5:00 p.m. (ET) as the deadline for filing proofs of claim against the U.S. Debtors (the “Bar Date”). The Motion1 seeks entry of a proposed order (“Proposed Order”), that (i) establishes the Bar Date; (ii) approves the Proof of Claim Form; and (iii) approves the proposed notice procedures and form for the Bar Date notices.

Metropolitan Insurance Company has joined ING Clarion Capital Loan Services, Inc., Wells Fargo Bank, N.A., and FRM Funding Company, Inc in requesting the Bankruptcy Court to dismiss as bad faith filings the bankruptcy cases of twenty-one property level CMBS borrower subsidiaries of General Growth Properties, Inc. ING filed the first motion on May 4th with respect to eight debtors, and a hearing was set for May 27th. That hearing was subsequently adjourned to June 17th. Creditors having similar motions to be heard on June 17th were required to file their motions to dismiss by May 29th .

The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.  

AMUSEMENT PARKS

Theme park operator Six Flags files Chapter 11; seeks expedited approval of pre-pack plan.  

AUTOMOTIVE  

A Louisiana District court finds that the filing of an allegedly time barred proof of claim by a creditor does not amount to a violation of the Fair Debt Collection Practices Act. B-Real, LLC v. Rogers et al., 2009 WL 1405844 (M.D.La. May 19, 2009) (Ruling on Appeal)

A Louisiana District Court ruling provides that a creditor did not violate the provisions of the Fair Debt Collection Practices Act (FDCPA) by filing what were alleged to be three time-barred proofs of claim based upon underlying debt allowed under Louisiana law.

On May 22, 2009, President Obama signed into law the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the “Credit CARD Act of 2009” or the “Act”), Public Law No: 111-24. The Act is intended to crackdown on certain credit card practices perceived as abusive – such as retroactive interest rate increases, "double cycle" billing and the offering of "fee harvester" cards. For credit counseling agencies and those that advertise and market debt management plan services to consumers, the Act is notable in three primary ways:

Only twice has the U.S. Supreme Court spoken directly to environmental issues in bankruptcy – until now. Today the Supreme Court ruled that certain claims can in fact be barred by a bankruptcy court's channeling injunction. The case is particularly important in light of the major corporate bankruptcies now under way in the industrial sector, where environmental costs can drive the success or failure of a restructuring.

Century Indemnity Company (“CIC”) reinsured The Home Insurance Company (“Home”). Due to Home’s liquidation proceedings, which began in 2003, CIC became fully liable for a $13 million settlement of certain environmental claims for which CIC and Home were both primarily liable under the parties’ respective insurance contracts. CIC, a debtor in the Home proceedings, sought a setoff of $8 million against other obligations owed to Home, for Home’s share of the settlement that CIC paid in full. The New Hampshire Supreme Court reversed the trial court’s order permitting the setoff.

Bankruptcy is a highly specialized legal practice area that can be difficult for the non-lawyer to navigate. Bankruptcy can also present many traps for the unwary. A bankruptcy or distressed financial situation will in most cases materially affect a company’s key relationships, customers, suppliers and business partners. All company decision makers need an understanding of how to react to protect their organization’s interests. Here are ten practical considerations to recognize in this distressed environment.

Introduction

On March 30, 2009, the United States Supreme Court heard oral argument in Travelers Indemnity Co. v. Bailey,1 a case that addresses the jurisdiction of bankruptcy courts to authorize third-party releases in the context of a debtor’s plan of reorganization.