Timing is key to valuation of all types and in all contexts. But in bankruptcy, valuation timing can take on heightened importance because a central element of bankruptcy involves distributing value as of a specific point in time. Higher valuation means larger creditor recoveries in bankruptcy, and lower valuation means smaller creditor recoveries. Valuation can also affect which creditors receive those recoveries and the extent to which various stakeholders retain an interest in the reorganized debtor.
On July 19, 2017, the Third Circuit Court of Appeals issued an opinion in Arrow Oil & Gas, Inc., et al. v. J. Aron & Company, et al.(In re Semcrude, L.P., et al.), Case Nos. 15-3094, 15-3095, 15-3096 and 15-3097, affirming the Delaware bankruptcy court and district court, holding that upstream oil producers do not have an automatically perfected statutory security interest in oil sold even if Texas or Kansas law applied.
The Commissioner, State of New Jersey Department of Banking and Insurance (Commissioner) authorized recoupment of guaranty fund assessments by way of a policyholder surcharge (Recoupment Order). By Order No. A17-110, dated August 3, 2017, http://www.state.nj.us/dobi/orders/a17_110.pdf. The Recoupment Order comes in response to a bulletin issued by the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA), May 12, 2017 Bulletin 2017-003.
(Bankr. E.D. Ky. Aug. 4, 2017)
In Royal Bank of Canada v. Casselman, three motions were brought before the Court. First, a continuation of a motion for approval and directions brought by the receiver. Second, a motion to allow counsel for the debtor to withdraw as lawyer of record. Third, a motion by the Sexton Group Ltd.
Takata Corporation, a Japanese corporation, as well as two of its subsidiaries and affiliates have filed a petition for recognition of a foreign main proceeding in the Bankruptcy Court for the District of Delaware (Case No. 17-11713).
Law360, New York (August 9, 2017, 4:09 PM EDT) -- According to industry reports, retailers have announced well over 3,000 store closings already this year, nearly double the total for all of 2016. Retail landlords must navigate a wide variety of legal risks as turmoil in the retail business intensifies. Through an integrated, multidisciplinary legal approach, landlords can help minimize loss and maintain their ability to do what they do best — position real estate for maximum returns.
The U.S. District Court for the Northern District of Illinois recently held that a title insurer may exclude coverage under the exception for defects “created, suffered, assumed, or agreed to by the insured claimant” without intentional or wrongful conduct by the insured.
In so ruling, the Court also held that the Illinois statute for bad faith denial of coverage by insurers did not apply to title insurers.
In a divided opinion Tuesday, the Court of Appeals held that a lease and guaranty are separate contracts, even when the guaranty is incorporated into the lease. SeeFriday Investments, LLC v. Bally Total Fitness of the Mid-Atlantic, Inc. For this reason, the court held, a guaranty might be discharged in bankruptcy – even where the tenant assumes the lease to which it is attached and incorporated.