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    A bankrupt inheritance
    2014-09-10

    As wealth preservation for future generations has become a popular topic among clients, estate planning practitioners have changed their tune when advising clients on how distributions should be made to beneficiaries.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Berger Singerman LLP
    Authors:
    Joshua N. Goldglantz
    Location:
    USA
    Firm:
    Berger Singerman LLP
    Weathering the storm: is TMT Procurement the death knell for debtor in possession financing in the Fifth Circuit or just a pebble in the ocean?
    2014-09-10

    On September 3, 2014, the United States Court of Appeals for the Fifth Circuit entered an opinion vacating various orders of the United States Bankruptcy Court and District Court for the Southern District of Texas (the “Bankruptcy Court” and the “District Court”) in the bankruptcy cases of TMT Procurement Corporation and its affiliated debtors (the “Debtors”), including a final order approving the Debtors’ post-petition debtor in possession financing (the “DIP Order”) with Macqua

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Haynes and Boone LLP, Debtor in possession, United States bankruptcy court, Fifth Circuit, US District Court for Southern District of Texas
    Authors:
    Judith Elkin
    Location:
    USA
    Firm:
    Haynes and Boone LLP
    Momentous decision in Momentive Performance Materials: cramdown of secured creditors – Part II
    2014-09-10

    On August 26, 2014, Judge Drain concluded the confirmation hearing in Momentive Performance Materials and issued several bench rulings on cramdown interest rates, the availability of a make-whole premium, third party releases, and the extent of the subordination of senior subordinated noteholders.

    Filed under:
    USA, New York, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Title 11 of the US Code
    Authors:
    David Nigel Griffiths
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Eleventh Circuit vacates bad-faith asset sale
    2014-09-04

    The U.S. Court of Appeals for the Eleventh Circuit, on Aug. 15, 2014, ordered a bankruptcy court to vacate a final asset sale order almost four years after its entry because of insider misconduct. In re Global Energies, LLC, 2014 WL 3974577 (11th Cir. Aug. 15, 2014).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, White Collar Crime, Schulte Roth & Zabel LLP, United States bankruptcy court, Eleventh Circuit
    Authors:
    Michael L. Cook
    Location:
    USA
    Firm:
    Schulte Roth & Zabel LLP
    Tennessee Bankruptcy Court weighs in on “bid chilling” as basis of “for cause” limitation on secured creditor’s credit bid right
    2014-09-04

    In earlier posts, we discussed rulings by two bankruptcy courts, one in Delaware and one in Virginia, in which the potential chilling e

    Filed under:
    USA, Tennessee, Insolvency & Restructuring, Litigation, Dykema Gossett PLLC, Secured creditor, United States bankruptcy court
    Authors:
    Brian J. Page
    Location:
    USA
    Firm:
    Dykema Gossett PLLC
    S.D.N.Y. Bankruptcy Court denies claim for make-whole premium and allows cram down of debtors’ chapter 11 plan paying secured creditors below-market interest rates on replacement notes
    2014-09-01

    On August 26, 2014, the Honorable Robert D. Drain, Bankruptcy Judge of the United States Bankruptcy Court for the Southern District of New York, issued several bench rulings (the “Bench Rulings”) in connection with confirmation of a plan of reorganization in the chapter 11 cases of MPM Silicones, LLC, et al.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Fried Frank Harris Shriver & Jacobson LLP, Debtor, United States bankruptcy court
    Authors:
    Brad Eric Scheler , Gary L. Kaplan , Alan N. Resnick , Jennifer L. Rodburg , Kalman Ochs
    Location:
    USA
    Firm:
    Fried Frank Harris Shriver & Jacobson LLP
    LLC managers beware: get involved with member distributions by an insolvent LLC and you may be personally liable
    2014-09-02

    Vieira v. Harris (In re JK Harris & Co., LLC), 512 B.R. 562 (Bankr. D. S.C. 2012) –

    A chapter 7 trustee sued a manager of three limited liability company (LLC) debtors for breach of fiduciary duty and to hold the manager personally liable for distributions made to members, including himself.

    Filed under:
    USA, South Carolina, Insolvency & Restructuring, Litigation, Troutman Pepper, Fiduciary, Limited liability company, Gross negligence
    Location:
    USA
    Firm:
    Troutman Pepper
    Bankruptcy Court holds that secured creditors can be “crammed down” with below-market rate replacement notes
    2014-09-02

    On August 26, 2014, in the case In re MPM Silicones, LLC, Case No. 14-22503 (Bankr. S.D.N.Y.) (“Momentive”), the United States Bankruptcy Court for the Southern District of New York held that secured creditors could be “crammed down” in a chapter 11 plan with replacement notes bearing interest at substantially below market rates.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Ropes & Gray LLP, United States bankruptcy court
    Authors:
    Mark I. Bane , Alyson Gal Allen , Alfred O. Rose , Stephen Moeller-Sally , David C. Djaha
    Location:
    USA
    Firm:
    Ropes & Gray LLP
    No easy road – GM ignition switch litigation raises difficult bankruptcy-related questions
    2014-09-02

    General Motors LLC (“New GM”) came into being in the summer of 2009, when it acquired substantially all of the assets of General Motors Corporation (“Old GM”) in a sale undertaken pursuant to section 363 of the Bankruptcy Code.  The July 2009 Sale Order approved by U.S.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Injunction, General Motors
    Authors:
    Benjamin D. Feder
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Ninth Circuit -- bank did not violate automatic stay by placing administrative hold on chapter 7 debtors' bank accounts
    2014-09-03

    On August 26, 2014, the Ninth Circuit Court of Appeals held that Wells Fargo (the “Bank”) did not violate the automatic stay by placing a temporary administrative hold on a chapter 7 debtor’s bank accounts.  See In re Mwangi, 2014 WL 4194057 (9th Cir. 2014).  Holland & Hart represented the Bank in this significant victory.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Holland & Hart LLP, Debtor, Ninth Circuit
    Location:
    USA
    Firm:
    Holland & Hart LLP

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