Claims trader loses out on cure payments where debtor’s approved plan permits postconfirmation rejection of executory contracts

ReGen Capital I, Inc. v. UAL Corporation, et al., (In the Matter of UAL Corporation, et al.), 635 F.3d 312 (7th Cir. 2011).

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Filed under:
USA, Insolvency & Restructuring, Litigation, Telecoms, Reed Smith LLP, Bankruptcy, Debtor, Unsecured debt, Security (finance), Interest, Federal Reporter, Default (finance), United Airlines, Second Circuit, United States bankruptcy court, Seventh Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
FAA registration law does not preempt state UCC where partially completed airplanes fail to satisfy FAA definition of “aircraft”

Mata, et al., v. Eclipse Aerospace, Inc. (In re AE Liquidation, Inc., et al.) Case No. 08-51891, 2011 BL 51047 (Bankr. D. Del. Feb. 28, 2011)

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Filed under:
USA, Delaware, Aviation, Insolvency & Restructuring, Litigation, Reed Smith LLP, Federal preemption, Debtor, Breach of contract, Fraud, Liquidation, Aircraft registration, Constructive trust, Federal Aviation Administration, Uniform Commercial Code (USA), Trustee, United States bankruptcy court
Authors:
Kathleen A. Murphy
Location:
USA
Firm:
Reed Smith LLP
Federal prohibition on bankruptcy discrimination does not cover hiring

In Myers v. Toojay's Mgmt. Corp., the Eleventh Circuit held that a federal Bankruptcy Code provision prohibiting termination of and discrimination against employees for filing bankruptcy does not cover hiring decisions. Plaintiff was offered a job as a restaurant manager conditioned upon a background check. The employer rescinded the job offer allegedly because plaintiff had filed for bankruptcy.

Filed under:
USA, Employment & Labor, Insolvency & Restructuring, Litigation, Fenwick & West LLP, Credit history, Bankruptcy, Discrimination, Civil Rights Act 1964 (USA), Eleventh Circuit
Authors:
Daniel J. McCoy , Allen Kato
Location:
USA
Firm:
Fenwick & West LLP
Restaurant chain Perkins & Marie Callender's, Inc., files for bankruptcy in Delaware

Introduction

Filed under:
USA, Delaware, Insolvency & Restructuring, Leisure & Tourism, Litigation, Fox Rothschild LLP, Bankruptcy, Unsecured debt, Limited liability partnership, Debt, US Code, Chief executive officer, United States bankruptcy court, US District Court for District of Delaware
Authors:
L. Jason Cornell
Location:
USA
Firm:
Fox Rothschild LLP
Decision in New Century TRS Holdings, Inc. holds that publication in 2 newspapers is insufficient to grant a motion for summary judgment

Summary

In a 14 page opinion published June 7, 2011, Judge Carey ruled that publication of notice in only two newspapers was insufficient information to grant a motion to dismiss based on adequacy of notice. Judge Carey’s opinion is available here (the “Opinion”).

Background

Filed under:
USA, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Interest, Federal Reporter, Due process, Subject-matter jurisdiction, The Wall Street Journal, United States bankruptcy court, Third Circuit
Authors:
L. John Bird
Location:
USA
Firm:
Fox Rothschild LLP
Landlord’s corner

In re Heller Ehrman, LLP No. 10-CV-03134 2011 WL 635224 (N.D. Cal. Feb. 11, 2011)

In In re Heller Ehrman, LLP, the court analyzed whether the statutory cap imposed on a landlord’s damages resulting from the rejection of a lease should be computed based on the time remaining in the lease, or the full damages resulting from the rejection. While noting a split of authority, the District Court determined that the computation of the cap should be based on a temporal measure to be consistent with statutory language.

Filed under:
USA, California, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Debtor, Breach of contract, Landlord, Leasehold estate, Statute of limitations, Title 11 of the US Code
Authors:
Derek J. Baker
Location:
USA
Firm:
Reed Smith LLP
Court grants parent companies standing to sue lender as third-party beneficiaries of loan commitment agreements

Basic Capital Management, Inc. v. Dynex Commercial, Inc., 2011 WL 12067376 (Tex. Sup. Ct. J. Apr. 1, 2011)  

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Filed under:
USA, Texas, Banking, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Public company, Credit (finance), Breach of contract, Beneficiary, Real estate investment trust, Standing (law), Parent company, Texas Supreme Court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Trademark license agreement defines materiality, effectively establishing a perpetual executory agreement subject to perpetual rejection

Lewis Brothers Bakeries Incorporated and Chicago Baking Company v. Interstate Brands Corporation (In re Interstate Bakeries Corporation, et al.), Bk. Case No. 04-45818-11-JWV (W.D. Mo. March 21, 2011)

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Filed under:
USA, Missouri, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Debtor, Breach of contract, Federal Reporter, Eighth Circuit, United States bankruptcy court, Third Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
In a case of first impression, the Third Circuit holds that discounted cash flow analysis may be used as a ‘commercially reasonable determinant of value’ with respect to repurchase agreement acceleration under section 562

Agricole Corporate and Investment Bank New York Branch, f.k.a. Calyon New York Branch v. American Home Mortgage Holdings, Inc. (In re American Home Mortgage Holdings, Inc.), No. 09- 4295, 2011 WL 522945 (3d Cir. February 16, 2011)

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Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Mortgage loan, Investment banking, Liquidation, Cashflow, Default (finance), Market value, Valuation (finance), Discounted cash flow, Westlaw, Third Circuit
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP
Security interest in FCC license and proceeds thereof is ‘after-acquired’ property where no sale agreement executed pre-petition, wiping out lender’s lien

Spectrum Scan LLC and Joli Lofstedt, Trustee v. Valley Bank & Trust Co. (In re Tracy Broadcasting Corporation), 438 B.R. 323 (Bankr. D. Colo. 2010)

CASE SNAPSHOT

Filed under:
USA, Colorado, Insolvency & Restructuring, Litigation, Media & Entertainment, Reed Smith LLP, Debtor, Unsecured debt, Collateral (finance), Intangible asset, Unsecured creditor, Federal Communications Commission (USA), Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, Fourth Circuit, Tenth Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP