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    District Court holds the existence of arbitration clause in agreement at issue is insufficient grounds for withdrawing reference
    2015-03-26

    On March 10, 2015, the United States District Court for the Middle District of Alabama issued a memorandum decision in the case of Harrelson v. DSS, Inc. (No. 14-mc-03675), declining to withdraw the reference from the bankruptcy court and holding that the existence of an arbitration agreement and a class action waiver in that arbitration agreement did not require substantial consideration of the Federal Arbitration Act (FAA).

    Facts

    Filed under:
    USA, Alabama, Arbitration & ADR, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Debtor, Arbitration clause, Class action, Federal Arbitration Act 1926 (USA)
    Location:
    USA
    Firm:
    Alston & Bird LLP
    Ninth Circuit Holds Unimpaired Unsecured Creditors Entitled to Post-Bankruptcy Interest on Claims at Contractual Default Rate
    2022-08-31

    “Under the long-standing ‘solvent-debtor exception,’ plaintiffs [unsecured trade creditors] possess an equitable right to receive post-petition interest at the contractual or default state law rate, subject to any other equitable considerations, before [the debtor] collects surplus value from the bankruptcy estate,” held the Ninth Circuit on Aug. 29, 2022. In re PG&E Corporation, 2022 WL 3712498, *4 (9th Cir. Aug. 29, 2022) (2-1).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Schulte Roth & Zabel LLP, Unsecured creditor, Ninth Circuit
    Authors:
    Michael L. Cook , Douglas S. Mintz
    Location:
    USA
    Firm:
    Schulte Roth & Zabel LLP
    Long awaited clarity (of sorts) on the Creditor Duty: The Supreme Court judgment in BTI v Sequana
    2022-10-10

    60 second speed read:

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, DLA Piper, Insolvency, UK Supreme Court
    Authors:
    Jeremy Andrews , Pippa Hill
    Location:
    United Kingdom
    Firm:
    DLA Piper
    New Chapter 11 Filing - Packable Holdings, LLC.
    2022-08-29

    On August 28, 2022, Hauppauge, N.Y.-based Packable Holdings, LLC, a privately-owned tech-enabled e-commerce company, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10797). The company reports $100 million to $500 million in both assets and liabilities.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cole Schotz PC
    Location:
    USA
    Firm:
    Cole Schotz PC
    New Chapter 11 Filing - Carestream Health, Inc.
    2022-08-23

    On August 23, 2022 (the “Petition Date”), Rochester, New York-based Carestream Health, Inc.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cole Schotz PC
    Location:
    USA
    Firm:
    Cole Schotz PC
    New Chapter 11 Filing - ExpressJet Airlines LLC
    2022-08-23

    On August 23, 2022, College Park, Georgia-based ExpressJet Airlines LLC, a leading regional airline connecting millions of passengers to North America monthly, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10787). The company reports $10 million to $50 million in both assets and liabilities.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cole Schotz PC
    Location:
    USA
    Firm:
    Cole Schotz PC
    Ontario Court of Appeal: A debtor's assurances may prolong the discoverability of a creditor's claim for non-payment
    2022-08-23

    Understanding limitation periods are of crucial importance in the construction industry, particularly when a contractor is faced with unpaid invoices for services or materials rendered. The Ontario Court of Appeal stepped back into the spotlight in this regard with its decision in Thermal Exchange Service Inc. v Metropolitan Toronto Condominium Corporation No. 1289, 2022 ONCA 186, in holding that a defendant's assurances may prolong the "discoverability" of a claim for non-payment.

    Background

    Filed under:
    Canada, Ontario, Insolvency & Restructuring, Litigation, Gowling WLG, Court of Appeal for Ontario
    Authors:
    Sahil Shoor
    Location:
    Canada
    Firm:
    Gowling WLG
    What does today's Sequana decision mean for directors?
    2022-10-05

    Background

    On 5 October 2022, the Supreme Court handed down its long-awaited judgment in BTI 2014 LLC v. Sequana S.A. [2022] UKSC 25 concerning the trigger point at which directors must have regard to the interests of creditors pursuant to s.172(3) of the Companies Act 2006 (the "creditors' interests duty").

    Filed under:
    European Union, United Kingdom, Insolvency & Restructuring, Litigation, Public, Dentons, Brexit, Supply chain, Coronavirus, Insolvency, UK Supreme Court
    Authors:
    Tessa Blank , Neil Griffiths , Luci Mitchell-Fry , Ian Fox , Celia Hayward , Richard Pallot-Cook
    Location:
    European Union, United Kingdom
    Firm:
    Dentons
    Construction owner receivership: Clarifying construction lien holdback priority when there are multiple building mortgages
    2022-08-23

    It is common for construction project owners to finance projects through multiple mortgages, especially in times of rising construction costs. However, when an insolvency situation arises, holdback priority claims from contractors and subcontractors are particularly complex when there are multiple building mortgages involved. The Ontario Superior Court (Commercial List) provided new clarity in this regard in its April 29, 2022 decision in BCIMC Construction Fund Corp. et al.

    Filed under:
    Canada, Construction, Insolvency & Restructuring, Litigation, Projects & Procurement, Gowling WLG, Insolvency, Receivership
    Authors:
    Sahil Shoor , Michael Piaseczny
    Location:
    Canada
    Firm:
    Gowling WLG
    Singapore International Commercial Court: Singapore’s latest step in becoming a debt restructuring hub
    2022-10-13

    Since 1 October 2022, the Singapore International Commercial Court now has jurisdiction to hear cross-border restructuring and insolvency matters. In addition, foreign lawyers may be appointed to make submissions in restructuring and insolvency proceedings in the SICC. Lawyers may even enter into conditional fee agreements with their clients for selected proceedings provided that certain safeguards are met.

    Filed under:
    Singapore, Arbitration & ADR, Insolvency & Restructuring, Litigation, Hogan Lovells, Mediation, Insolvency, UNCITRAL
    Authors:
    Nick Williams , Jonathan Leitch , Carol Hartopp
    Location:
    Singapore
    Firm:
    Hogan Lovells

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