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    Lehman seeks to unwind elevations of European loan participants
    2010-11-08

    In the jargon of the secondary bank loan market, loans beneficially owned by participation may be "elevated" to direct assignments once requisite administrative agent and/or borrower consent is obtained. Such "elevations" customarily have been viewed as straightforward transactions -- when completed, the participant simply stands in the shoes of the grantor and becomes the lender of record of the loan on the books of the administrative agent.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Securitization & Structured Finance, Richards Kibbe & Orbe LLP, Bankruptcy, Debtor, Interest, Debt, Liability (financial accounting), Liquidation, Holding company, Subsidiary, Lehman Brothers, Title 11 of the US Code
    Location:
    USA
    Firm:
    Richards Kibbe & Orbe LLP
    Partner's fraud found to be non-dischargeable by "innocent" partner
    2010-11-22

    Late this summer, the United States District Court for the Northern District of Illinois, Eastern Division, took on an issue of first impression – whether the fraud of one partner can be imputed to an “innocent” partner in order to render a judgment non-dischargeable.

    Filed under:
    USA, Illinois, Company & Commercial, Construction, Insolvency & Restructuring, Litigation, Frost Brown Todd LLP, Debtor, Breach of contract, Fraud, Interest, Arbitration award, Debt, Negligence, Joint and several liability, US Congress, US District Court for Northern District of Illinois
    Authors:
    Daniel P. King
    Location:
    USA
    Firm:
    Frost Brown Todd LLP
    Dueling proceedings between bankruptcy and receiverships
    2010-11-19

    The University of Texas' 29th Annual Jay L. Westbrook Bankruptcy Conference November 19, 2010

    Filed under:
    USA, Insolvency & Restructuring, Munsch Hardt Kopf & Harr PC, Bankruptcy, Debtor, Commercial property, Interest, Credit crunch, US Securities and Exchange Commission, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Joseph J. Wielebinski
    Location:
    USA
    Firm:
    Munsch Hardt Kopf & Harr PC
    FDIC brings second action against directors or officers of failed banks
    2010-11-16

    Industry observers have been waiting to see when bank failures arising out of the recent financial crisis would produce a wave of Federal Deposit Insurance Corporation (“FDIC”) litigation similar to that seen in the early 1990s after the savings and loan crisis. With its second suit in recent months, the FDIC has shown that it will aggressively pursue claims against directors and officers in connection with failed depository institutions.

    Filed under:
    USA, Banking, Company & Commercial, Insolvency & Restructuring, Dechert LLP, Surety, Breach of contract, Fiduciary, Board of directors, Interest, Federal Reporter, Credit risk, Negligence, Depository institution, Underwriting, Gross negligence, Federal Deposit Insurance Corporation (USA), US Code, Ninth Circuit
    Authors:
    Thomas P. Vartanian , Robert H. Ledig
    Location:
    USA
    Firm:
    Dechert LLP
    Delaware court interprets LLC Act to bar derivative suit by creditor of insolvent LLC
    2010-11-23

    The Delaware Court of Chancery decided earlier this month that a creditor of an insolvent LLC does not have standing to maintain a derivative suit in the name of the LLC against its managers. CML V, LLC v. Bax, No. 5373-VCL, 2010 Del. Ch. LEXIS 220 (Del. Ch. Nov. 3, 2010).

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Stoel Rives LLP, Shareholder, Fiduciary, Interest, Limited liability company, Standing (law), Derivative suit, Delaware General Corporation Law, Court of Chancery, Delaware Court of Chancery, Delaware Supreme Court
    Location:
    USA
    Firm:
    Stoel Rives LLP
    Post-confirmation cramdown interest rate: ‘market formula’ applies to oversecured
    2010-12-01

    In re SJT Ventures, LLC, 2010 WL 3342206 (Bankr. N.D. Texas 2010)

    CASE SNAPSHOT

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Limited liability company, Default (finance), Secured creditor, Commercial mortgage, Secured loan, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Ann E. Pille
    Location:
    USA
    Firm:
    Reed Smith LLP
    The Donald Trumps Icahn - intercreditor agreement restrictions on junior lenders not controlling in consideration of approval of nonconsensual reorganization plan
    2010-12-01

    In the Matter of TCI 2 Holdings, LLC, 428 B.R. 117 (Bankr. D.N.J. 2010)

    CASE SNAPSHOT

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Unsecured debt, Interest, Consideration, Debt, Casino, Leverage (finance), United States bankruptcy court
    Authors:
    Brian M. Schenker
    Location:
    USA
    Firm:
    Reed Smith LLP
    Funds ‘earmarked’ for bondholders not property of the estate and not subject to avoidance
    2010-12-01

    Cooper v Centar Investments LTD, et al. (In re Trigem America Corporation), 431 B.R. 855 (C.D. Cal. 2010)

    CASE SNAPSHOT

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bond (finance), Debtor, Fraud, Accounts receivable, Interest, Swap (finance), Stock exchange, Convertible bonds, Ninth Circuit
    Authors:
    Christopher O. Rivas
    Location:
    USA
    Firm:
    Reed Smith LLP
    Delaware Bankruptcy Court sheds light on the common interest doctrine preventing the waiver of privileged communications
    2010-12-01

    In re Leslie Controls, Inc., (Bankr. D. Del., Case No. 10-12199, 2010)

    CASE SNAPSHOT

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Waiver, Interest, Work-product doctrine, Attorney-client privilege, Discovery, Liability (financial accounting), Delaware Supreme Court, United States bankruptcy court
    Authors:
    Brian M. Rostocki
    Location:
    USA
    Firm:
    Reed Smith LLP
    Trustee’s use of strong-arm powers limited where state ucc gives priority to the lender that perfects its lien post-petition
    2010-12-01

    Sovereign Bank v Hepner (In re Roser), 613 F.3d 1240 (10th Cir. 2010).

    CASE SNAPSHOT

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Conflict of laws, Debtor, Collateral (finance), Interest, Secured loan, Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, United States bankruptcy court, Tenth Circuit
    Authors:
    Christopher O. Rivas
    Location:
    USA
    Firm:
    Reed Smith LLP

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