Lehman bankruptcy decision has potentially broad reaching effects

Court Broadens Interpretation of Code Sections Invalidating Ipso Facto Contract Provisions

Filed under:
USA, Insolvency & Restructuring, Litigation, Locke Lord LLP, Bankruptcy, Debtor, Collateral (finance), ISP, Interest, Swap (finance), Deed, Default (finance), Subsidiary, Lehman Brothers cases, Lehman Brothers, United States bankruptcy court, US District Court for the Southern District of New York
Authors:
Donna Burnett , Joseph N. Froehlich , Casey B. Howard , Paul Kjelsberg , David W. Wirt
Location:
USA
Firm:
Locke Lord LLP
Second Circuit clarifies meaning and application of retention provision under Bankruptcy Code

On January 6, 2009, the United States Court of Appeals for the Second Circuit rendered a decision in the case of Riker, Danzig, Scherer, Hyland & Perretti v. Official Comm. of Unsecured Creditors (In re: Smart World Tech., LLC) that clarifies the implications of a bankruptcy court's "pre-approval" of the terms of a professional's retention by the bankruptcy estate under Sections 327 and 328 of the Bankruptcy Code.

Filed under:
USA, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Contractual term, Bankruptcy, Debtor, ISP, Liquidation, Contingent fee, Second Circuit, United States bankruptcy court
Location:
USA
Firm:
Squire Patton Boggs