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    Seaway Bank and Trust Company assumes all of the deposits of First Suburban National Bank
    2010-10-25

    On Friday, the Office of the Comptroller of the Currency closed First Suburban National Bank, headquartered in Maywood, Illinois, and appointed the FDIC as receiver.

    Filed under:
    USA, Illinois, Banking, Insolvency & Restructuring, Alston & Bird LLP, Office of the Comptroller of the Currency (USA), Federal Deposit Insurance Corporation (USA)
    Authors:
    Sarah Whitlock
    Location:
    USA
    Firm:
    Alston & Bird LLP
    Partner's fraud found to be non-dischargeable by "innocent" partner
    2010-11-22

    Late this summer, the United States District Court for the Northern District of Illinois, Eastern Division, took on an issue of first impression – whether the fraud of one partner can be imputed to an “innocent” partner in order to render a judgment non-dischargeable.

    Filed under:
    USA, Illinois, Company & Commercial, Construction, Insolvency & Restructuring, Litigation, Frost Brown Todd LLP, Debtor, Breach of contract, Fraud, Interest, Arbitration award, Debt, Negligence, Joint and several liability, US Congress, US District Court for Northern District of Illinois
    Authors:
    Daniel P. King
    Location:
    USA
    Firm:
    Frost Brown Todd LLP
    Credit bidding cannot be prohibited – the recent decision in River Road Hotel Partners
    2010-12-01

    In re River Road Hotel Partners, LLC, et al., Case No. 09-B-30029 (Bankr. N.D. Ill. 2010)

    CASE SNAPSHOT

    Filed under:
    USA, Illinois, Insolvency & Restructuring, Leisure & Tourism, Litigation, Reed Smith LLP, Bankruptcy, Credit (finance), Debtor, Federal Reporter, Limited liability company, Default (finance), Secured loan, Federal Deposit Insurance Corporation (USA), US District Court for Northern District of Illinois
    Authors:
    Stephen T Bobo
    Location:
    USA
    Firm:
    Reed Smith LLP
    Commercial relationship did not create a § 523(a)(4) fiduciary
    2011-02-16

    FOLLETT HIGHER EDUCATION GROUP v. BERMAN (January 21, 2011)

    Filed under:
    USA, Illinois, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Shareholder, Debtor, Fiduciary, Advertising, Board of directors, Debt, Brokerage firm, Bankruptcy discharge, United States bankruptcy court, Seventh Circuit
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Insolvency exclusion bars broker's claim for coverage and broker's payments deemed not amounts it was "legally obligated to pay"
    2011-03-01

    The United States District Court for the Northern District of Illinois, applying Illinois law, has ruled that an insolvency exclusion barred coverage for claims arising out of an insurance broker’s placement of coverage with an insolvent insurance association. American Automobile Insurance Co. v. B.D. McClure & Associates, Ltd., 2011 WL 211204 (N.D. Ill. Jan. 21, 2011).

    Filed under:
    USA, Illinois, Insolvency & Restructuring, Insurance, Litigation, Wiley Rein LLP, Costs in English law, Voluntary association, Negligence, Liquidation, Good faith, US District Court for Northern District of Illinois
    Location:
    USA
    Firm:
    Wiley Rein LLP
    River Road court certifies direct appeal to the Seventh Circuit Court of Appeals on credit bid issue
    2011-04-06

    On November 4, 2010, the United States Bankruptcy Court for the Northern District of Illinois certified the appeal of debtors River Road Hotel Partners, LLC, et al. of the court’s Order Denying Debtors’ Bid Procedures Motion (the Order) entered October 5, 2010. In its Order, the bankruptcy court expressly denied the debtors’ attempts to prevent their secured creditors from credit bidding in a proposed sale of assets under a chapter 11 plan.

    Filed under:
    USA, Illinois, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Credit (finance), Debtor, Interest, Federal Reporter, Amicus curiae, Dissenting opinion, Secured creditor, Majority opinion, Secured loan, United States bankruptcy court, Fifth Circuit, Third Circuit, US District Court for Northern District of Illinois
    Location:
    USA
    Firm:
    Squire Patton Boggs
    Court holds that ‘all value’ must be considered in determining ‘reasonably equivalent value’ in fraudulent transfer case
    2011-06-15

    First State Bank of Red Bud v. Official Committee of Unsecured Creditors (In re Schaffer), No. 10-198- GPM, 2011 WL 1118666 (S.D. Ill. March 28, 2011)

    CASE SNAPSHOT

    Filed under:
    USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder, Debtor, Collateral (finance), Consideration, Debt, Mortgage loan, Foreclosure, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Brian M. Schenker
    Location:
    USA
    Firm:
    Reed Smith LLP
    Priming lien approved: new loan use would benefit the estate + debtor’s sizable equity cushion = adequate assurance
    2011-06-15

    In re Olde Prairie Block Owner, LLC, Bankr. No. 10B22668 (Bankr. N.D. Ill. March 11, 2011)  

    CASE SNAPSHOT

    Filed under:
    USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Credit (finance), Debtor, Unsecured debt, Tax credit, Property tax, Limited liability company, Debt, Foreclosure, Default (finance), Secured loan, United States bankruptcy court
    Authors:
    Ann E. Pille
    Location:
    USA
    Firm:
    Reed Smith LLP
    Securitized loan payments safe harbored under section 546(e)
    2015-05-14

    The U.S. Bankruptcy Court for the Northern District of Illinois recently held in Krol v.

    Filed under:
    USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Safe harbor (law), United States bankruptcy court
    Authors:
    Debora Hoehne
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Safe harbors and securitizations: loan payments in connection with a commercial mortgage-backed securitization protected from clawback under the U.S. Bankruptcy Code safe harbors
    2015-05-14

    Krol v. Key Bank National Association, et al. (In re MCK Millenium Centre Parking, LLC), Adv. No. 14-00392 (N.D. Ill. Apr. 24, 2015)

    Filed under:
    USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Securitization & Structured Finance, Reed Smith LLP, Debtor, Commercial mortgage-backed security, Mortgage-backed security
    Authors:
    Sarah K. Kam , Paul B. Turner
    Location:
    USA
    Firm:
    Reed Smith LLP

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