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    Deed administrator unsuccessful in blocking property owner from retaking possession
    2023-06-22

    In Vincent Cold Storage Pty Ltd v Centuria Property Funds No 2 Limited (No 2) [2023] VSC 314, the Deed Administrator sought section 444F orders to restrain the property owner from retaking premises leased by Vincent Cold Storage in administration and was unsuccessful.

    Key takeaways

    Filed under:
    Australia, Insolvency & Restructuring, Litigation, Real Estate, Corrs Chambers Westgarth, Liquidation, Corporations Act 2001 (Australia)
    Authors:
    Alicia Salvo
    Location:
    Australia
    Firm:
    Corrs Chambers Westgarth
    9th Cir. Holds Chapter 13 Trustee Not Entitled to Compensation When Case Dismissed Prior to Confirmation
    2023-06-21

    The U.S. Court of Appeals for the Ninth Circuit recently reversed a contrary trial court ruling and joined with the U.S. Court of Appeals for the Tenth Circuit in holding that a Chapter 13 trustee is not entitled to a percentage fee of plan payments as compensation for her work in a Chapter 13 case when the case is dismissed prior to confirmation.

    A copy of the opinion in Evans v. McCallister (In re Evans) is available at: Link to Opinion.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Maurice Wutscher LLP, Ninth Circuit
    Location:
    USA
    Firm:
    Maurice Wutscher LLP
    HK CFA Clarifies Effect of Exclusive Jurisdiction Clauses on the Court's Insolvency Jurisdiction
    2023-06-21

    The Hong Kong Court of Final Appeal (CFA) has recently in Re Guy Kwok-Hung Lam[1] confirmed that, where a dispute in respect of a petition debt is subject to an exclusive jurisdiction clause (EJC), the Hong Kong court should gen

    Filed under:
    Hong Kong, Arbitration & ADR, Insolvency & Restructuring, Litigation, Slaughter and May, Exclusive jurisdiction, Court of Final Appeal (Hong Kong)
    Authors:
    Wynne Mok , Audrey Li
    Location:
    Hong Kong
    Firm:
    Slaughter and May
    Freezing orders: applicants (including liquidators) face high hurdle to justify cap on cross-undertaking in damages
    2023-06-22

    The Court of Appeal has set aside a freezing order obtained by a provisional liquidator within winding up proceedings, on the basis that the cross-undertaking in damages given by him was inadequate because it was limited to the amount recovered for the estate. The liquidator had not discharged the burden of showing good reason to depart from the “default position” that a cross-undertaking should be unlimited in amount: Hunt v Ubhi [2023] EWCA Civ 417.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP
    Authors:
    Jan O'Neill
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Getting Subchapter V Trustees Paid: § 1191(e)
    2023-06-22

    Subchapter V of the Bankruptcy Code’s Chapter 11 is relatively new: it took effect as a new law on February 19, 2020. Accordingly, new questions continue to arise on how its terms and provisions should be applied.

    A Trustee Fees Question

    One Subchapter V question is this:

    • When does a Subchapter V trustee’s administrative claim for fees and costs get paid?

    A Regular Chapter 11 Answer

    The answer in regular Chapter 11 has always been this:

    Filed under:
    USA, Nebraska, Insolvency & Restructuring, Litigation, Koley Jessen PC, Bankruptcy
    Authors:
    Donald L. Swanson
    Location:
    USA
    Firm:
    Koley Jessen PC
    Don’t Expect to Discharge That PAGA Debt in Bankruptcy
    2023-06-22

    As we have written here on multiple occasions, the Private Attorneys General Act (PAGA) disadvantages employers in several ways. Despite permitting recovery similar to what might be obtained in a class action, class certification rules do not apply and it is an open question whether courts can even limit an unmanageable claim before trial.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Proskauer Rose LLP, Bankruptcy
    Authors:
    Jonathan Slowik
    Location:
    USA
    Firm:
    Proskauer Rose LLP
    Bank Failures Breathe New Life into Old Issue
    2023-06-22

    The first half of 2023 witnessed the failure of three financial institutions in quick succession—Silicon Valley Bank (March 10, 2023), Signature Bank (March 12, 2023), and First Republic Bank (May 1, 2023). This was the first time three financial institutions failed in such a compressed time period since the Great Recession of 2008.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Tax, Squire Patton Boggs, Federal Deposit Insurance Corporation (USA), Silicon Valley Bank, Financial Institutions Reform, Recovery, and Enforcement Act 1989 (USA)
    Authors:
    Maura P. McIntyre , Jeffrey N. Rothleder
    Location:
    USA
    Firm:
    Squire Patton Boggs
    Fifth Circuit Hold that Courts May Bypass Equitable Mootness to Rule on the Merits of Appeal
    2023-06-20

    In Matter of Texxon Petrochemicals, L.L.C., 67 F.4th 259 (5th Cir. 2023), the Fifth Circuit held that even if an appeal is equitably moot, the appellate court nonetheless has appellate jurisdiction to consider the merits of the appeal, without reaching the issue of equitable mootness.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Nelson Mullins Riley & Scarborough LLP
    Authors:
    Shane G. Ramsey
    Location:
    USA
    Firm:
    Nelson Mullins Riley & Scarborough LLP
    Hard on Soft Caps - Bankruptcy Court Declines to Limit Access to D&O Insurance
    2023-06-20

    Directors and officers should take note of a recent decision from the US Bankruptcy Court for the Southern District of New York concerning access to D&O insurance policy proceeds. In In re SVB Financial Group, Case No. 23-10367 (Bankr. S.D.N.Y.

    Filed under:
    USA, New York, Company & Commercial, Insolvency & Restructuring, Insurance, Litigation, Hunton Andrews Kurth LLP, Silicon Valley Bank, US Bankruptcy Court for the Southern District of New York
    Authors:
    Justin F. Paget , Kollin Bender
    Location:
    USA
    Firm:
    Hunton Andrews Kurth LLP
    Covenant Enforcement and the Automatic Bankruptcy Stay
    2023-06-21

    Little can be more frustrating to an association than when a non-compliant homeowner files for bankruptcy. The bankruptcy laws are complex, and navigating them can be a challenge even for the most sophisticated managers. One of the broadest protections for homeowners that file bankruptcy is the “automatic stay.” This provision of the bankruptcy code immediately halts all efforts to enforce any claim against the debtor that may affect the homeowner’s property, including collection of overdue assessments and non-compliance fees.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, LeClairRyan, Bankruptcy
    Authors:
    Gregory Bean
    Location:
    USA
    Firm:
    LeClairRyan

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