Rare is the decision finding that bid rigging occurred. Recently, though, the United States Bankruptcy Court for the District of Connecticut uncovered a bid rigging scheme in connection with the sale of property in a Canadian arrangement proceeding. In re Sagecrest II LLC, et al., Case No. 08-50754 (Bankr. D. Conn. Dec.
Typically, when an individual debtor files for bankruptcy, all of his or her belongings become part of the big “property of the estate” pot that the court ladles up pro rata among hungry creditors. But debtors need to eat too. Exemption law allows individual debtors and their families to keep some basic property, such as the clothes on their backs and roofs over their heads.
We hope you are emerging from your sugar coma and ready for some easy to digest morsels of the Weil Bankruptcy Blog. With this entry, we summarize the blog entries from the second half of October.
In a Twist, Court Finds That Junior Stakeholders Violated Their Implied Duties Under an Indenture
Congress made clear in its enactment of section 503(b)(3)(D) of the Bankruptcy Code that, to the extent a creditor makes a substantial contribution in a chapter 9 or chapter 11 bankruptcy case, that creditor should be rewarded. Because the reward — reimbursement of fees and expenses as administrative expenses of the estate —
Some bankruptcy cases can have long tails with issues developing years after the entities confirm their chapter 11 plans. That seems to be particularly true when cases deal with mass torts. As the recent case of Piper Aircraft Corporation demonstrates, an issue can arise in a chapter 11 case over twenty years after the debtor’s plan was confirmed. In
The High Court in London gave judgment on parts A and B of the Lehman Waterfall II Application on 31 July 2015. The application is part of the ongoing dispute as to the distribution of the estimated surplus of more than £7 billion in the main Lehman operating company in Europe, Lehman Brothers International (Europe) (LBIE).
Benjamin Franklin is quoted as having said “in this world nothing can be said to be certain, except death and taxes.” No offense to Mr. Franklin, but we had always thought that there was at least one other certainty in this world—in a bankruptcy case, creditors get paid pursuant to the priority scheme under section 507(a) of the Bankruptcy Code. It turns out, however, that Mr.
Overview
With data privacy issues constantly in the news, what do businesses need to know about handling personal information when they’re considering bankruptcy, especially if some personal information – like customer records – may be a valuable asset?
A recent ruling from the United States District Court for the Southern District of New York sent shock waves through the legal and financial community, with some shouting that this “could be a gamestopper for the private equity business.”1 Although the ruling in In re Nine West LBO Securities Litigation2 breaks new ground and arguably narrows the protections available to directors under the normally-broad business judgment rule, there are clear lessons others can take from this saga to prevent a similar fate.