The U.S. Bankruptcy Court for the Southern District of New York recently prohibited insurers from terminating debtors' insurance contracts based on so-called "cesser" clauses, which provided for the automatic termination of insurance coverage upon the commencement of proceedings under any bankruptcy or insolvency law. LaMonica v. N. of Eng. Protecting & Indem. Ass'n Ltd. (In re Probulk Inc.), 407 B.R. 56 (Bankr. S.D.N.Y. 2009).
The U.S. Court of Appeals for the Ninth Circuit has held that a creditor trustee could not recover claims under a Director & Officer insurance policy because of the policy's "insured v. insured" exclusion. Biltmore Assocs., LLC v. Twin City Fire Ins. Co., Ad. No. 07-16036, 2009 US App. LEXIS 15322 (9th Cir. July 10, 2009).
The U.S. Supreme Court has issued a long-awaited decision that many practitioners had hoped would provide insight into the permissible breadth of third-party releases and injunctions often contained in confirmed chapter 11 plans. The high court, however, narrowly resolved the issue presented in Travelers Indem. Co. v. Bailey, 129 S.Ct. 2195 (2009), and left open that ultimate question.
The U.S. Court of Appeals for the Ninth Circuit has held that there is a federal common law of receivership in the context of real property security interest, joining the Eleventh Circuit. Can. Life Assurance Co. v. LaPeter, 557 F.3d 1103 (9th Cir. 2009).
An opinion issued earlier this year by the Ninth Circuit Bankruptcy Appellate Panel in the largest municipal bankruptcy since Orange County has become final.
The BAP decision in the City of Vallejo, California, case became final when the appellant city labor unions voluntarily withdrew their further appeal to the Ninth Circuit. The appeal to the BAP had followed an eight-day bankruptcy court trial over whether Vallejo was eligible to be a chapter 9 debtor. On June 26, 2009, the BAP issued an opinion affirming the bankruptcy court's determination that Vallejo was eligible.
The U.S. Bankruptcy Court in Delaware recently issued an opinion that appears to alter, in part, its earlier decision regarding the administrative status of stub rent.
A fundamental component in the commercial mortgage-backed securities ("CMBS") market is the lender's reliance that the loan is made to a "bankruptcy remote" special purpose entity ("SPE"). The loan documents and operating agreements relating to an SPE typically require that the SPE maintain separate existence and contain restrictions that limit the SPE's debt and ensure separateness.
In a decision with potentially broad implications, the U.S. Court of Appeals for the Sixth Circuit recently determined that payments made to former shareholders of a privately held company in a leveraged buyout transaction are protected as "settlement payments" pursuant to section 546(e) of the Bankruptcy Code.
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.
AUTOMOTIVE
Accuride Corp., an Evansville, Ind.-based maker of medium- and heavy-duty steel and aluminum wheels may file for bankruptcy under a prearranged agreement with bondholders and senior lenders.
The U.S. Bankruptcy Court for the District of Delaware approved debtor Magna Entertainment Corp.’s proposed bidding procedures for the sale of Maryland’s Pimlico Race Course, home to the Preakness Stakes, and Laurel Park race course over the objections from former owners and state authorities. The former owners, together with Baltimore’s mayor and city council and the state of Maryland, objected to the expedited time frame, arguing that the debtor failed to provide parties in interest with sufficient time to respond to the proposed procedures.