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  

Holley Performance Products, four affiliates file for Chapter 11 protection for the second time.  

AUTOMOTIVE COMPONENTS

CIT Group Inc.

In a decision entered July 30, 2009, the Bankruptcy Court for the Eastern District of North Carolina held that a bankruptcy trustee can avoid the lien claim of a subcontractor whose claim derives from a claim of lien on funds asserted under North Carolina state law. The case is In re: Harrelson Utilities, Inc.

Legal Background

In Dumont v. Ford Motor Credit Company, the Ninth Circuit Court of Appeals confirms the Bankruptcy Code does not protect a debtor’s personal property collateral if the debtor fails to commit to redeem, reaffirm or assume the underlying loan—even if the debtor continues timely to make loan payments.

United States Supreme Court

Washington, D.C.

November 3, 2009

The bankruptcy court's opinion exemplifies the second guessing that can confront solvency opinion providers and highlights issues that providers should carefully vet with experienced legal counsel.

Lenders are often counseled about fraudulent conveyance risks when they engage in financing transactions. It is usual, customary and the norm for steps to be taken to attempt to reduce such risks, including obtaining solvency and fairness opinions and using so-called savings clauses in loan documents. These undertakings and features notwithstanding, when a borrower or guarantor files a chapter 11 petition, often fraudulent conveyance claims are threatened, used as leverage, and settled within the context of a plan of reorganization.

Masuda Funai routinely represents creditors in bankruptcy proceedings in order to protect their contractual and legal interests and rights to payment. 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

Retail Seminar Business In re Telligenix Corporation (Bankr. M.D. Fla.) Case no. 09-15238

Residential Lots in Mississippi In re South Marsh Developers, LLC(Bankr. N.D. Fla.) Case no. 09-32148