Safe harbor update: continued uncertainty regarding applicability of safe harbors to leveraged buy-outs of privately held securities

A Western District of New York bankruptcy court has held that the safe harbor provisions of section 546(e) of the Bankruptcy Code apply to leveraged buy-outs of privately held securities. See Cyganowski v. Lapides (In re Batavia Nursing Home, LLC), No. 12-1145 (Bankr. W.D.N.Y. July 29, 2013).

Filed under:
USA, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Security (finance), Safe harbor (law), Privately held company, Leveraged buyout, United States bankruptcy court
Authors:
Aimee M. Cummo , David A. Wender , Karen Gelernt , Jonathan T. Edwards
Location:
USA
Firm:
Alston & Bird LLP
Congressional Oversight Panel releases report on use of TARP funds to reorganize U.S. auto industry

After holding a hearing on the topic this past July, the Congressional Oversight Panel (COP) released a report earlier this week entitled, “The Use of TARP Funds in Support and Reorganization of the Domestic Automotive Industry,” examining how TARP funds have been used to support and reorganize both

Filed under:
USA, Banking, Insolvency & Restructuring, Alston & Bird LLP, Conflict of interest, Public company, Bankruptcy, Shareholder, Fiduciary, Interest, Privately held company, Due diligence, Troubled Asset Relief Program, US Federal Government, HM Treasury (UK), US Department of the Treasury, General Motors, Chrysler
Authors:
Anjali Desai
Location:
USA
Firm:
Alston & Bird LLP
The American Recovery and Reinvestment Act encourages debt repurchases and restructurings

Recent declines in the trading prices of many companies' debt securities has created opportunities for those companies to reacquire a portion or all of that debt at substantial discounts through open market repurchases, privately negotiated transactions and tender offers. In some cases, the opportunities for discounted repurchases come to companies directly from investors seeking to sell the debt back in order to meet their own cash needs or otherwise obtain liquidity for thinly-traded securities.

Filed under:
USA, Insolvency & Restructuring, Dentons, Private equity, Security (finance), Market liquidity, Privately held company, Accounting, Debt, Tax deduction, Fair market value, Debt restructuring, Buyout, American Recovery and Reinvestment Act 2009 (USA)
Location:
USA
Firm:
Dentons