Introduction

Lamar, Archer & Cofrin, LLP v. Appling, No. 16-1215

The Bankruptcy Code prohibits the discharge of “any debt . . . to the extent obtained by . . . actual fraud, other than a statement respecting the debtor’s . . . financial condition.” 11 U.S.C. § 523(a)(2). Circuit courts have split 3-3 as to whether a statement about a particular asset can qualify as a “statement respecting the debtor’s . . . financial condition.” The Supreme Court has agreed to resolve that split. Mayer Brown LLP represents the respondent.

On January 17, 2017, in a long-awaited decision in Marblegate Asset Management, LLC v. Education Management Finance Corp.,1 the US Court of Appeals for the Second Circuit held that Section 316 of the Trust Indenture Act ("TIA") does not prohibit an out of court restructuring of corporate bonds so long as an indenture's core payment terms are left intact.

Puerto Rico v. Franklin CA Tax-Free Trust, No. 15-233
Acosta-Febo v. Franklin CA Tax-Free Trust, No. 15-255

In In re Bernard L. Madoff Investment Securities LLC (“Madoff”),1 the United States Court of Appeals for the Second Circuit reaffirmed  its broad and literal interpretation of section 546(e) of the Bankruptcy Code, which provides a  safe harbor for transfers made in connection with a securities contract that might otherwise be  attacked as preferences or fraudulent transfers.

Did you know that dispositions of property of a solvent company made after the commencement of a winding-up will unlikely be disturbed unless it can be demonstrated that the disposition is not in the interests of the company?

Legal Update
September 27, 2013
In re Tribune: Defendants Successfully Challenge Individual
Creditors Standing But District Court Rules that Section 546(e)
Safe Harbor Does Not Bar Individual Creditors’ State Law Based
Constructive Fraudulent Conveyance Claims
On September 23, 2013, the US District Court
for the Southern District of New York in In re
Tribune1 held that the individual creditor suits at
issue were stayed because the Creditors’
Committee was in the process of prosecuting
claims for intentional fraudulent conveyance

The Federal Communications Commission recently adopted an order suspending “on an interim basis” its special access pricing flexibility rules.1 The Order states that parties adversely affected by the suspension may seek relief through the forbearance process, and the Commission promised to issue a mandatory data request within 60 days, which will help it subsequently conduct a detailed market analysis of the special access market. The two Republican Commissioners, Robert McDowell and Ajit Pai, dissented.

As many will know, a failure to “...do all that is reasonable for the purpose of bringing the statutory demand to the debtor’s attention...” may result in an annulment of a bankruptcy order. But how is this requirement of Rule 46 of the Bankruptcy Rules met?

Introduction