Here is an opinion illustrating how the “indicative rulings” process in Fed.R.Bankr.P. 8008 can work:
I. INTRODUCTION
Several significant judicial decisions were released in 2025 that remain relevant to businesses, commercial lenders and restructuring professionals. This bulletin summarizes the key developments of 2025 and highlights areas of significance for restructuring professionals and market participants to monitor in 2026.
1. Hudson’s Bay Company and Assignment of Contracts
Outstanding payments can quickly become a serious financial risk for creditors. In the UAE, to successfully recover a debt, a creditor must not only prove the debt owed to him, but also take the right steps, at the right time, to maximise the chances of recovery of the debt. Creditors who act early, assess risk properly, and structure their contracts carefully, are far more likely to recover their debts.
A bankruptcy judge has ruled that a debtor can satisfy the Bankruptcy Code’s rehabilitation standard by selling its assets as a going concern and thereby avoid conversion from chapter 11 to chapter 7. In the same decision, the court denied a motion seeking the appointment of what the movants called an “examiner with expanded powers.” In re Deqser, LLC, Case No. 25-10687, 2026 Bankr. LEXIS 1004 (Bankr. D. Del. Apr. 22, 2026).
In a significant ruling for shareholders, companies and directors, the Supreme Court has confirmed that unfair prejudice petitions under section 994 of the Companies Act 2006 (CA 2006) are not caught by statutory time limits imposed by the Limitation Act 1980 (LA 1980).
This Legal Update explores the considerations that a warehouse lender should bear in mind when deciding whether to provide borrowing base credit for participation interests and defining eligible participation interests.
Example of Eligibility Criterion:
Such Collateral Loan is not a participation in a debt obligation or a loan unless it is an Eligible Participation Interest.
Why Do Lenders Care if an Underlying Asset is a Participation Interest?