In a bankruptcy trustee’s adversary action to recover money paid to a collection agency within 90 days prior to the filing of the debtor’s bankruptcy petition, and pursuant to a previous garnishment order, the U.S. Court of Appeals for the Seventh Circuit recently reversed the ruling of a trial court denying the trustee’s application.
The Director of the Justice Department’s U.S. Trustee Program (USTP), which oversees the administration of bankruptcy cases, is about to change for the first time in nearly 20 years. Clifford White will be stepping down from the role and consumer advocate Tara Twomey will be taking up the mantle.
Introduction
Remember the old saying, “Grab what you can get, when you can get it”?
Well . . . that old saying is now the federal law of the land, applying exclusively to bankruptcy laws in Alabama and North Carolina.
Here’s how. Congress imposed bankruptcy fee increases on Chapter 11 debtors in every state and territory of these United States, other than Alabama and North Carolina. As to similar fees in Alabama and North Carolina, the U.S. Supreme Court recently observed:
In Sanofi-Aventis U.S. LLC v. Mallinckrodt PLC,1 the United States District Court for the District of Delaware ruled that a debtor that purchased intellectual property under a prepetition asset purchase agreement could continue to retain and use the property post-confirmation while discharging its obligations to pay any future royalties otherwise owed. The decision highlights the importance of structuring transactions up-front to minimize the consequences of future bankruptcies.
Background
Economic indicators tell us 2023 is set to be a challenging year with many countries still struggling to recover from the cost of the pandemic, combined with the impacts of the war in Ukraine driving up energy and food costs globally along with inflation gripping most western nations.
Canadian tech companies have entered uncharted waters, with a range of factors threatening to produce a liquidity crunch for many of them.
For years, the tech sector enjoyed record volumes of venture capital investment fueled by low interest rates, an inflow of foreign and corporate investment, and the collective desire to create a vibrant tech ecosystem in Canada. As the economic tides have changed, with climbing interest rates and a looming recession, tech companies are facing an increasingly tough fundraising environment.
THE EUROPEAN DISTRESSED MARKET STEADILY PICKED UP IN 2022,
When deciding the amount of homestead exemption to which a debtor is entitled, should a bankruptcy court apply the state exemption in effect on the creation date of the lien or on the bankruptcy filing date? According to the Ninth Circuit in a recent decision, the court should apply the state exemption law in effect on the filing date of the bankruptcy petition.
With the current economic difficulties affecting the tech sector, a number of companies who took Future Fund investment during the pandemic have been faced with the following realities: