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    An overview of Chapter 9 of the Bankruptcy Code: municipal debt adjustments
    2010-08-16

    As attention shifts from the global financial crisis of 2008–2009 to the global sovereign crisis that currently is affecting much of Europe, lawmakers are scrambling to create new laws and regulations designed to stave off the next financial crisis.[1] Meanwhile, a different threat quietly has been growing in America's states, cities, towns, municipalities, and other political subdivisions.

    Filed under:
    USA, Insolvency & Restructuring, Public, Jones Day, Bankruptcy, Employee Retirement Income Security Act 1974 (USA), Swap (finance), Debt, Foreclosure, Credit default swap, Pension Benefit Guaranty Corporation
    Authors:
    Peter J. Benvenutti , David G. Heiman , Heather Lennox , Lori Sinanyan , Mark K. Sisitsky , Jayant W. Tambe
    Location:
    USA
    Firm:
    Jones Day
    Fannie Mae and Freddie Mac react to apparent defects in foreclosure procedures
    2010-10-02

    Yesterday, following announcements from Ally Financial and JP Morgan Chase of temporary suspensions of foreclosure efforts in certain states, Fannie Mae issued a statement yes

    Filed under:
    USA, Banking, Insolvency & Restructuring, Alston & Bird LLP, Mortgage loan, Foreclosure, Capital punishment, JPMorgan Chase, Bank of America, Ally Financial, Federal Housing Finance Agency
    Authors:
    David E Brown
    Location:
    USA
    Firm:
    Alston & Bird LLP
    No abuse of discretion in refusing to reopen bankruptcy proceedings after four years
    2010-10-22

    REDMOND v. FIFTH THIRD BANK (October 20, 2010)

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Debt, Mortgage loan, Foreclosure, Standard of review, Remand (court procedure), Default (finance), Prejudice, United States bankruptcy court
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Hotel loan workouts
    2010-10-19

    For many hotel owners, it is an all-too-familiar story: occupancy is down, and even though operating expenses have been cut to the bone, there is just not enough money to go around. It seems there is always another bill: franchise fees, payroll, real property taxes, debt service—the list goes on. The unfortunate result is that either because of a failure to make a payment or a breach of some other covenant, the owner finds itself looking at a default notice from its lender. When dealing with a loan default, there are four things the hotel owner needs to understand.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Leisure & Tourism, Fox Rothschild LLP, Collateral (finance), Fiduciary, Covenant (law), Debt, Mortgage loan, Foreclosure, Maturity (finance), Refinancing, Default (finance), Mortgage-backed security, Credit rating agency
    Authors:
    Michael J. Kornacki
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    How far is too far - judgment creditors that sell a debtor’s real estate told to account for the fair market value of that property and must reimburse the debtor if they go too far
    2010-10-25

    On August 4, 2010, the New Jersey Superior Court, Appellate Division extended equitable principles previously applied in mortgage foreclosure cases to how far an unsecured judgment creditor could go to satisfy its lien against a debtor, deciding to follow a line of cases standing for the principal that “even in the absence of express statutory authorization, a court has inherent equitable authority to allow a fair market value credit in order to prevent a double recovery by a creditor against a debtor.” Moreover, in the case, MMU of New York, Inc. v.

    Filed under:
    USA, New Jersey, Insolvency & Restructuring, Litigation, Real Estate, Lowenstein Sandler LLP, Credit (finance), Debtor, Unsecured debt, Landlord, Consideration, Foreclosure, Default judgment, Fair market value, Remand (court procedure), Default (finance), Commercial mortgage, New Jersey Superior Court
    Location:
    USA
    Firm:
    Lowenstein Sandler LLP
    Chapter 7 trustee in consolidated bedding commences preference actions
    2010-10-24

    Introduction

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, HTTP cookie, Foreclosure, Default (finance), Title 11 of the US Code, Trustee, United States bankruptcy court
    Authors:
    L. Jason Cornell
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    Credit reporting and bankruptcy: is your post-discharge credit reporting inviting trouble?
    2010-11-15

    In difficult economic times, debtors’ attorneys closely review credit reports looking for potential legal claims against creditors. Long after a debtor has been discharged from bankruptcy, creditors can find themselves defending claims of improper credit reporting. A recent case from the Eastern District of North Carolina illustrates the trouble facing creditors who furnish incorrect reports of discharged debt. See In re Adams (Bankr. E.D.N.C. 2010).

    Filed under:
    USA, North Carolina, Insolvency & Restructuring, Litigation, Poyner Spruill LLP, Credit history, Punitive damages, Bankruptcy, Credit (finance), Debtor, Injunction, Debt, Mortgage loan, Foreclosure, Contempt of court, Refinancing, Credit score, Bankruptcy discharge, Title 11 of the US Code, Fair Debt Collection Practices Act 1977 (USA), Trustee, United States bankruptcy court
    Authors:
    Diane P. Furr , Lisa P. Sumner
    Location:
    USA
    Firm:
    Poyner Spruill LLP
    Fifth Circuit corrects undervaluation of secured lender’s priority claim more than two years after consummation of reorganization plan
    2010-11-19

    The U.S. Court of Appeals for the Fifth Circuit, on Oct. 19, 2010, corrected a bankruptcy court’s calculation of a secured lender group’s superpriority administrative claim more than two years after consummation of the debtor’s Chapter 11 reorganization plan. In re SCOPAC et al., F.3d__, 2010 WL 4069525, at *2-3, *5-6 (5th Cir. Oct. 19, 2010) (Jones, Ch.J.) [“Pacific Lumber II”]; see alsoIn re Pacific Lumber Co., 584 F.3d 229, 242 (5th Cir. 2009) [“Pacific Lumber I”] (plan “substantially consummated within weeks of confirmation”).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Debtor, Collateral (finance), Federal Reporter, Foreclosure, Secured creditor, Valuation (finance), United States bankruptcy court, Fifth Circuit
    Authors:
    Michael L. Cook , Joseph E. Bain
    Location:
    USA
    Firm:
    Schulte Roth & Zabel LLP
    Swaps
    2010-12-01

    We are seeing more and more challenges by borrowers to swaps. No big surprise since, with falling interest rates over the past few years, the borrowers are on the wrong end of the transactions. Although swaps are considered independent of the loans, they are often secured by the same collateral and are usually crossdefaulted with the loans, so the obligations that arise from early termination (which can be significant) become part of the collection process and are being fought vigorously by borrowers.

    Filed under:
    USA, Banking, Derivatives, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Limited liability company, Swap (finance), Mortgage loan, Foreclosure, Secured loan
    Authors:
    Peter S. Clark, II
    Location:
    USA
    Firm:
    Reed Smith LLP
    Massachusetts court upholds foreclosure-related action
    2010-12-13

    Generally speaking, Massachusetts is a non-judicial foreclosure state – meaning that lenders can foreclose on mortgages of Massachusetts property without seeking judicial approval beforehand. In certain circumstances, however, a pre-foreclosure judicial proceeding is required solely to determine whether the borrower is in the active military service and entitled to the protections of the Servicemembers Civil Relief Act, 50 U.S.C. §532.

    Filed under:
    USA, Massachusetts, Banking, Insolvency & Restructuring, Litigation, Nutter McClennen & Fish LLP, Debtor, Fiduciary, Interest, Mortgage loan, Foreclosure, Standing (law), Capital punishment, Mortgage-backed security, US Code, Trustee, United States bankruptcy court
    Location:
    USA
    Firm:
    Nutter McClennen & Fish LLP

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