The Bankruptcy Blog previously published an extensive guide to evaluating and purchasing director and officer (”D&O”) liability insurance for individuals at the helm of troubled companies. But what happens when a policy is in place and the directors and officers seek to obtain the proceeds of that policy to cover defense costs or related expenses?
An essential element to any cramdown plan is the presence of at least one impaired accepting class. Even when a plan proponent purports to satisfy this requirement, objecting parties will often challenge the plan’s classification scheme or whether a particular class is truly impaired. A recent decision from the Southern District of New York,
We know you’ve been spending a lot of time trying to figure out how to translate “Absolute Priority Rule,” “Equitable Mootness,” and “Make-Wholes” (not to mention “Cramdown”) into Halloween costumes, so you may have missed out on some of the entries the Weil Bankruptcy Blog has posted over the past six weeks. For our treats to you, we are handing out these entries in convenient (Count Dracula) bite-sized servings. You can indulge a little today, and we will have more for you next week.
Section 363 of the Bankruptcy Code provides debtors an efficient and flexible mechanism to dispose of substantially all estate assets outside of the confines of the Bankruptcy Code’s provisions concerning plan confirmation. The Third Circuit’s recent decision in
How many ages hence / Shall this our lofty scene be acted o’er, / In states unborn, and accents yet unknown!
– William Shakespeare, Julius Caesar
“It’s not that I’m afraid to die, I just don’t want to be there when it happens.” — Woody Allen
The Third Circuit’s recent holding in In re Jevic Holding Corp., raised a number of intriguing topics for us bankruptcy nerds so we could not resist taking a closer look at one of the issues presented in the case – structured dismissals. If you are not familiar with the concept, you are probably not alone, as the use of a structured dismissal as a means to exit bankruptcy is relatively uncommon. Although the ma
There is a common misconception that lender liability is a thing of the past. However, a recent decision provides a warning to lenders that they can be held liable and face substantial damages if they exercise excessive control over a debtor’s business affairs.
Mr Justice Snowden’s recent judgment sanctioning the Virgin Active restructuring plans is significant for several reasons. Not only is it the first judgment to consider the cram down power of the 2006 Companies Act, but it is only the third instance that the cross-class cram down mechanism has been used. It is also the first time it has been used to cram down classes of dissenting landlords.