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    Bankruptcy Court finds debtor entitled to a "free house" because mortgage foreclosure complaint barred by New Jersey statute of limitations
    2014-12-16

    Mortgage lenders should be aware of the New Jersey statute of limitations on mortgage foreclosure complaints. In In re Washington, 2014 Bankr. LEXIS 4649 (Bankr. D.N.J. Nov.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Duane Morris LLP, Debtor, Statute of limitations, Mortgage loan, Foreclosure, United States bankruptcy court
    Authors:
    Brett L. Messinger , Jarret P. Hitchings , Stuart I. Seiden
    Location:
    USA
    Firm:
    Duane Morris LLP
    Slouching towards bankruptcy: corporate fiduciaries escape liability in Ultimate Escapes
    2014-12-16

    As a company turns in the widening gyre of financial distress, its directors and officers are often confronted with situations that require them to make difficult decisions. Should things fall apart, those decisions may give rise to claims that directors or officers breached their fiduciary duties to the company. A 

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Fiduciary, Business judgement rule, United States bankruptcy court
    Authors:
    Gabriel A. Morgan
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Botticelli’s ‘Madonna and Child’: the risks of art consignment
    2014-12-16

    More than seven years is a long time to wait for a loaned painting to be returned. But after such a long wait, Sandro Botticelli’s Madonna and Child (1485) is being returned to its owner, Kraken Investments Limited (Kraken).   Kraken had consigned the painting to a gallery for sale, but the gallery’s bankruptcy intervened.

    Filed under:
    USA, Insolvency & Restructuring, Leisure & Tourism, Litigation, Greenberg Traurig LLP
    Authors:
    Kevin P. Ray
    Location:
    USA
    Firm:
    Greenberg Traurig LLP
    Bankruptcy court decision sheds light on cross-border eligibility, venue, and COMI issues (part two)
    2014-12-12

    In the first part of our two-part series on 

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Recorded documents: who loses when a document is not properly indexed?
    2014-12-12

    Agin v. Dookhan (In re Hultin), 516 B.R. 190 (Bankr. D. Mass. 2014) –

    A chapter 7 trustee sought to avoid a transfer of the debtor’s real property using his “strong arm” powers based on an argument that the deed conveying the property did not provide constructive notice since it was not properly indexed in the real estate records.

    Filed under:
    USA, Massachusetts, Banking, Insolvency & Restructuring, Litigation, Troutman Pepper, Constructive notice
    Location:
    USA
    Firm:
    Troutman Pepper
    SCOTUS to decide whether order denying plan confirmation is “final,” appealable
    2014-12-15

    The Supreme Court granted cert last Friday in the case of Bullard v.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Supreme Court of the United States
    Authors:
    Larisa Vaysman
    Location:
    USA
    Firm:
    Squire Patton Boggs
    Second Circuit affirms dismissal of Madoff Trustee’s six-year transfer and preference claims
    2014-12-15

    With several billions of dollars ultimately at stake, the Second Circuit has affirmed that Section 546(e) of the Bankruptcy Code, a safe-harbor protecting certain securities-related payments from bankruptcy “claw backs,” barred Irving Picard, Trustee of Bernard L. Madoff Investment Securities, LLC (“BLMIS”), from asserting all but a limited category of avoidance and recovery claims. In re Bernard L. Madoff Inv. Sec.

    Filed under:
    USA, Capital Markets, Insolvency & Restructuring, Litigation, Proskauer Rose LLP, Security (finance), Enron, Second Circuit
    Authors:
    Sarah S Gold
    Location:
    USA
    Firm:
    Proskauer Rose LLP
    United States Court of Appeals for Second Circuit holds that section 546(e) safe harbor protects from avoidance transfers of fictitious profits in connection with Madoff Ponzi scheme
    2014-12-11

    In In re Bernard L. Madoff Investment Securities LLC (“Madoff”),1 the United States Court of Appeals for the Second Circuit reaffirmed  its broad and literal interpretation of section 546(e) of the Bankruptcy Code, which provides a  safe harbor for transfers made in connection with a securities contract that might otherwise be  attacked as preferences or fraudulent transfers.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Mayer Brown, Security (finance), Safe harbor (law), Second Circuit
    Authors:
    Brian Trust , Joel Moss , Richard G. Ziegler
    Location:
    USA
    Firm:
    Mayer Brown
    Mistaken termination of financing statement proves costly to lender
    2014-12-11

    On October 27, 2014, the Delaware Supreme Court ruled that even inadvertent mistakes in UCC filings count, and the burden rests on the filing party to detect errors, and not on affected parties who come across them in a search. This ruling upsets a 2013 decision of a bankruptcy court and will ultimately determine the character of a $1.5 billion security interest in the General Motors (GM) bankruptcy.

    Background

    Filed under:
    USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Barnes & Thornburg LLP, Delaware Supreme Court
    Authors:
    L. Rachel Lerman , David M. Powlen
    Location:
    USA
    Firm:
    Barnes & Thornburg LLP
    How low can you go? A recent case demonstrates how low interest rates can go in a chapter 11 plan
    2014-12-11

    In large chapter 11 cases, millions of dollars often hinge on the appropriate interest rate. Chapter 11 debtors may not require impaired secured creditors to accept a proposed plan of reorganization unless the plan provides that secured creditors will receive future payments that are equivalent to the value of the creditors’ secured claims.  In order to satisfy this requirement, a debtor must propose an interest rate that will compensate these creditors for receiving deferred cash payments in lieu of a lump sum.

    Filed under:
    USA, Florida, Insolvency & Restructuring, Litigation, Berger Singerman LLP, Debtor
    Authors:
    Ashley Dillman Bruce
    Location:
    USA
    Firm:
    Berger Singerman LLP

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