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    Tenth Circuit insulates first-time transaction from preference attack
    2015-08-19

    A “first-time transaction can qualify” for the ordinary course of business exception to the preference recovery provision of the Bankruptcy Code (“Code”), held the U.S. Court of Appeals for the Tenth Circuit on Aug. 10, 2015. In re C.W. Mining Co., 2015 WL 4717709 (10th Cir. Aug. 10, 2015).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Tenth Circuit
    Authors:
    Michael L. Cook
    Location:
    USA
    Firm:
    Schulte Roth & Zabel LLP
    Second Circuit affirms voiding of secured creditor’s lien
    2015-08-10

    A Chapter 11 reorganization plan may extinguish a secured creditor’s lien if: (1) the plan “does not preserve the lien”; (2) the court confirms the plan; (3) the plan “dealt with” the lender’s collateral; and (4) the lender “participated in the bankruptcy” case, held the U.S. Court of Appeals for the Second Circuit on Aug. 4, 2015. In re Northern New England Tel. Operations, LLC, 2015 WL 4619576 (2d Cir. Aug. 4, 2015).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Secured creditor, Second Circuit, United States bankruptcy court
    Authors:
    Michael L. Cook
    Location:
    USA
    Firm:
    Schulte Roth & Zabel LLP
    The Fifth Circuit takes a mulligan
    2015-08-10

    I previously commented on a controversial fraudulent transfer opinion issued by the Fifth Circuit Court of Appeals. In Janvey v. The Golf Channel, 780 F.3d 641 (5th Cir.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, White Collar Crime, Squire Patton Boggs, Fifth Circuit, Texas Supreme Court
    Authors:
    Maxwell Tucker
    Location:
    USA
    Firm:
    Squire Patton Boggs
    SDNY bankruptcy court says claims against insurer need not be “inextricably intertwined” with insurer’s relationship with debtor to fall within scope of channeling injunction
    2015-08-11

    As the adage goes, everything old is new again.  Just like old fads coming back into style, bankruptcy issues that first arose decades ago seem to present themselves again and again over the years, albeit with a different set of facts.  Such is the case with the bankruptcy of Johns-Manville Corporation and its affiliates.  Despite Manville’s emergence from bankruptcy in 1988, questions regarding the protections of the channeling injunction issued under Manville’s chapter 11 plan continue to present themselves today.  Much to the relief of one of Manville’s insurers, in a

    Filed under:
    USA, New York, Insolvency & Restructuring, Insurance, Litigation, Weil Gotshal & Manges LLP, Injunction, United States bankruptcy court, US District Court for the Southern District of New York
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    What education management can teach US about the protections available to minority noteholders in an out-of-court restructuring
    2015-08-12

    Two recent decisions from the District Court for the Southern District of New York have renewed interest in the Trust Indenture Act and the ability of minority bondholders to use it as a shield to protect their rights in an out-of-court nonconsensual restructuring:  Marblegate Asset Management, LLC v.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Unsecured debt
    Authors:
    Jessica Liou
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Another bankruptcy court confirms plan reference to “surrender” means not defending a lender’s foreclosure
    2015-08-12

    Foreclosure defense and bankruptcy often go hand in hand, but sometimes it seems like the left hand doesn’t talk to the right. This has proven especially common with bankruptcy plans that propose to “surrender” real property encumbered by a mortgage. The term “surrender” is not defined in the bankruptcy code. As a result, lenders and borrowers often interpret the term differently. For example, most lenders interpret surrender to mean not defending a foreclosure.

    Filed under:
    USA, Florida, Banking, Insolvency & Restructuring, Litigation, Burr & Forman LLP, Foreclosure
    Authors:
    Nicholas S. Agnello
    Location:
    USA
    Firm:
    Burr & Forman LLP
    What Marblegate can teach US about the protections available to minority noteholders in an out-of-court restructuring
    2015-08-12

    Two recent decisions from the District Court for the Southern District of New York have renewed interest in the Trust Indenture Act and the ability of minority bondholders to use it as a shield to protect its rights in an out-of-court nonconsensual restructuring:  Marblegate Asset Management, LLC v.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Unsecured debt
    Authors:
    Jessica Liou
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Hercules Offshore, Inc. and 14 affiliates file a prepackaged chapter 11 case
    2015-08-13

    Today, August 13, 2015, Hercules Offshore, Inc. and 14 of its affiliates filed a prepackaged chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Delaware.  Hercules and its affiates are, according to the petition, providers of shallow-water drilling and marine services to the oil and natural gas exploration and production industry globally.  The cases have been assigned to the Honorable Kevin J.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Morris James LLP, United States bankruptcy court
    Authors:
    Carl "Chuck" N. Kunz III
    Location:
    USA
    Firm:
    Morris James LLP
    Update: Chesapeake energy on hook for make-whole amount…for now
    2015-08-14

    The June 2013 issue of Baseload included the article “A $400 Million Devil in the Details: The Cautionary Tale of the Chesapeake Par Call.” We published an update to that article in the January 2015 issue. On July 10, 2015, the District Court for the Southern District of New York held that Chesapeake is required to pay the noteholders the make-whole amount.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Hunton Andrews Kurth LLP
    Location:
    USA
    Firm:
    Hunton Andrews Kurth LLP
    Electronics recycler, ZLOOP, Inc., and two affiliates file chapter 11 cases
    2015-08-10

    On August 9, 2015, ZLOOP, INC., and two affiliates, Zloop Knitting Mill LLC and Zloop Nevada, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The cases have been assigned to The Honorable Kevin J. Carey and are docketed as case no. 15-11660.  Zloop's Chairman and CEO, Robert M.

    Filed under:
    USA, District of Columbia, Insolvency & Restructuring, Litigation, Morris James LLP, United States bankruptcy court
    Authors:
    Carl "Chuck" N. Kunz III
    Location:
    USA
    Firm:
    Morris James LLP

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