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    Are Unsecured Creditors of a Solvent Debtor Entitled to Post-Petition Interest at the Contract Rate? Recent Circuit Court of Appeals Decisions Say “Yes”
    2023-01-04

    Two recent decisions from circuit courts of appeal – the Fifth and Ninth – have addressed a question that does not arise often: in a solvent-debtor chapter 11 case, is the debtor required to pay post-petition interest (commonly referred to as “pendency interest”) to unsecured creditors in order to render such claims unimpaired? And, if so, what is the applicable rate of interest to use? Additionally, a subsequent decision from the Second Circuit, while not ultimately reaching the issue, favorably cited the recent Fifth and Ninth Circuit decisions.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Nelson Mullins Riley & Scarborough LLP
    Authors:
    Shane G. Ramsey
    Location:
    USA
    Firm:
    Nelson Mullins Riley & Scarborough LLP
    Insurers Beware of “Silent Crypto” Exposure
    2023-01-04

    The recent implosion of crypto firm FTX and its affiliates provides a case study for potential crypto exposure under traditional insurance policies. The FTX debacle is described herein is an introduction to a series of four articles on the potential liability exposure and coverage: Silent Crypto for D&O and Corporate Liability Insurance (Part I), Silent Crypto Exposure for Accountants (Part II), Silent Crypto Exposure for Lawyers (Part III), and Crime and Custody Coverage for Crypto Assets (Part IV).

    Filed under:
    USA, Capital Markets, Insolvency & Restructuring, Insurance, Litigation, Wilson Elser, Due diligence, Cryptocurrency, US Securities and Exchange Commission, Federal Deposit Insurance Corporation (USA), FTX, Supreme Court of the United States
    Authors:
    Anjali C. Das
    Location:
    USA
    Firm:
    Wilson Elser
    Substantial Contribution: A New Decision from the Third Circuit
    2022-12-29

    It’s often hard to persuade a bankruptcy court to grant a motion for substantial contribution. Any attorney thinking about making a motion should first ask herself two questions. First, has my work benefitted both my client and other creditors? Second, did my work result in more than an incidental benefit to the bankruptcy estate? If the answer to either question is no, then the attorney should forget about making the motion. The time spent on it will be wasted, and the motion will be denied.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Patterson Belknap Webb & Tyler LLP, Third Circuit
    Authors:
    Daniel A. Lowenthal
    Location:
    USA
    Firm:
    Patterson Belknap Webb & Tyler LLP
    The Pre-Insolvency Act, Insolvency Practitioners Act and Commercial Code (Amendment) Act have entered into Maltese Law
    2022-12-29

    The Insolvency Practitioners Act, the Pre-Insolvency Act and the Commercial Code (Amendment) Act were passed by the House of Representatives on the 14th of December 2022 and were assented to by the President on the 23rd of December 2022.

    Filed under:
    Malta, Insolvency & Restructuring, MAMO TCV Advocates
    Location:
    Malta
    Firm:
    MAMO TCV Advocates
    Decision of the Austrian Financial Court regarding Transfer Pricing
    2022-12-23

    On June 2, 2022, the Austrian Financial Court ruled on the arm's length nature of a) the liability commission in context with a shareholder loan, b) the Transfer Price of products and c) the crediting of trade receivables (GZ. RV/7102082/2009).

    Filed under:
    Austria, Insolvency & Restructuring, Litigation, WTS Global, Transfer pricing
    Authors:
    Martin Hummer
    Location:
    Austria
    Firm:
    WTS Global
    Federal Agencies Issue Request for Information on the Regulation of Biotechnology
    2022-12-23

    On December 20, 2022, the Office of Science and Technology Policy (OSTP) issued a notice of request for information (RFI) on the regulation of biotechnology on behalf of the U.S. Food and Drug Administration (FDA), the U.S. Environmental Protection Agency (EPA), and the U.S. Department of Agriculture (USDA).

    Filed under:
    USA, Healthcare & Life Sciences, Insolvency & Restructuring, Covington & Burling LLP, Biotechnology, US Food and Drug Administration, US Environmental Protection Agency, US Department of Agriculture
    Authors:
    Deepti Kulkarni , Jessica P. O'Connell , Thomas Brugato , Brian P. Sylvester , Alicia Lee
    Location:
    USA
    Firm:
    Covington & Burling LLP
    債権者による会社更生手続開始の申立て
    2022-12-23

    1. はじめに

    2022 年 11 月 25 日、株式会社SMBC キャピタル・パートナーズが、本邦最大の鶏卵業者で会社更生手続下にあるイセ食品株式会社の事業支援スポンサーとなることが発表された 。同月 30 日には、裁判所により、同スポンサーの代表者がイセ食品株式会社の事業家管財人に選任され 、本邦最大鶏卵業者の事業再生のための大きな一歩が踏み出されることとなった。

    近年の会社更生手続においては、裁判所の監督の下、更生会社の事業支援スポンサーが選定されることは一般的な運用ともいいうるが、本件の会社更生手続は、イセ食品株式会社が自ら会社更生手続開始を申し立てたものではなく、一部の株主及び債   権者による申立てにより開始されたという特異な経過を辿っている。

    以下では、申立て債権者のイニシアティブにより、債務者事業を維持し、再生につなげる手法の実例として、本件の経緯を概観することとする。

    2.イセ食品グループの会社更生

    Filed under:
    Japan, Insolvency & Restructuring, Litigation, Nishimura & Asahi
    Authors:
    Hiroyuki Takahashi
    Location:
    Japan
    Firm:
    Nishimura & Asahi
    Crypto-Crash
    2022-12-23

    A crash in the cryptocurrency industry started this past spring, causing a significant number of cryptocurrency exchanges and related entities to seek bankruptcy protection, including the recent filing of one of the largest cryptocurrency exchanges, FTX. The volatility in the industry continues, with the subsequent filing of the cryptocurrency firm BlockFi and the crypto-mining company Core Scientific.

    Crypto Basics

    Filed under:
    USA, Banking, Insolvency & Restructuring, IT & Data Protection, Fredrikson & Byron PA, Blockchain, Cryptocurrency, Non-fungible tokens, Google, FTX
    Authors:
    Steven R. Kinsella
    Location:
    USA
    Firm:
    Fredrikson & Byron PA
    9th Cir. Affirms Bankruptcy Court Ruling Avoiding Judgment Lien on Calif. Homestead Property
    2022-12-26

    The U.S. Court of Appeals for the Ninth Circuit recently affirmed a bankruptcy court’s judgment in favor of a debtor who sought to avoid a judgment lien under California’s homestead exemption law.

    In so ruling, the Ninth Circuit held that, when a judgment lien impairs a debtor’s state-law homestead exemption, the Bankruptcy Code requires courts to determine the exemption to which the debtor would have been entitled in the absence of the lien.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Maurice Wutscher LLP, Bankruptcy, Supreme Court of the United States, Ninth Circuit, U.S. Court of Appeals
    Authors:
    Jacob C. VanAusdall
    Location:
    USA
    Firm:
    Maurice Wutscher LLP
    Crystal Ball Not Required
    2022-12-27

    Company directors owe several fiduciary duties, one of which is to act in the best interest of shareholders. But to what extent does that duty to shareholders apply in the context of the financial health of the company? The award-winning commercial and litigation lawyers at ParrisWhittaker are experienced in advising company directors on their duties, including where there are concerns around the lawfulness of paying dividends.

    Filed under:
    Bahamas, United Kingdom, Company & Commercial, Insolvency & Restructuring, ParrisWhittaker
    Authors:
    Jacy Whittaker , A. Kenra Parris-Whittaker
    Location:
    Bahamas, United Kingdom
    Firm:
    ParrisWhittaker

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