Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

Texas district court affirms the contractual default interest rate where the debtor is solvent

2010-09-13

Good v RMR Investments, Inc, 428 BR 249 (ED Texas, March 31, 2010)

CASE SNAPSHOT

A secured creditor in a chapter 11 case objected to the confirmation of the reorganization plan of the debtor, arguing that the proper “cramdown” interest rate (court-modified rate) was the pre-petition contractual default rate, rather than the significantly lower cramdown rate. After the debtor appealed, the District Court affirmed, holding that utilizing the contract rate of interest was appropriate because the debtor was solvent.

Filed under:

USA, Texas, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Interest, Limited liability company, Maturity (finance), Default (finance), Secured creditor, Deed of trust (real estate), Title 11 of the US Code, United States bankruptcy court, Fifth Circuit

Authors:

Ann E. Pille

Location:

USA

Firm:

Reed Smith LLP

Landlords successful in obtaining stub rent as an administrative expense under Section 503

2010-09-13

In re Goody’s Family Clothing, Inc- F3d – 2010 WL 2671929 (3d Cir June 29, 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Bankruptcy, Debtor, Landlord, Legal burden of proof, Exclusive right, Title 11 of the US Code, Third Circuit

Authors:

Derek J. Baker

Location:

USA

Firm:

Reed Smith LLP

The Third Circuit overrules a long-standing case, changing the ability of personal injury plaintiffs to bring suit against debtors

2010-09-13

JELD-WEN, Inc v Van Brunt (In re Grossman’s Inc), (3d Cir No 09-1563, June 2, 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Product Regulation & Liability, Reed Smith LLP, Bankruptcy, Debtor, Statutory interpretation, Due process, Liquidation, Precondition, Bankruptcy discharge, Title 11 of the US Code, United States bankruptcy court, Third Circuit

Authors:

Jennifer P. Knox

Location:

USA

Firm:

Reed Smith LLP

Delaware Bankruptcy Court finds appointment of examiner not required every time the statutory debt threshold is exceeded

2010-09-13

In re Spansion, Inc, 426 BR 114 (Bankr Del April 1, 2010)

CASE SNAPSHOT

Filed under:

USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Fraud, Interest, Misconduct, Discovery, Debt, Vacated judgment, Misrepresentation, Title 11 of the US Code, United States bankruptcy court

Authors:

Elizabeth A. McGovern

Location:

USA

Firm:

Reed Smith LLP

The Third Circuit expands the substantial-performance test to determine if a trademark license contract is executory

2010-09-13

In re Exide Technologies, 607 F3d 957 (3rd Cir June 1, 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Bankruptcy, Debtor, Breach of contract, Employment contract, Second Circuit, United States bankruptcy court, Third Circuit

Authors:

Christopher O. Rivas

Location:

USA

Firm:

Reed Smith LLP

Defense of imputation of an agent’s bad conduct to its principal clarified in Pennsylvania; independent auditor at risk for $1 billion in damages

2010-09-13

Official Committee of Unsecured Creditors of Allegheny Health, Education and Research Foundation v PricewaterhouseCoopers, LLP(3d Cir No 07-1397, May 28, 2010)

CASE SNAPSHOT

Filed under:

USA, Pennsylvania, Insolvency & Restructuring, Litigation, Non-profit Organizations, Professional Negligence, Reed Smith LLP, Breach of contract, Fraud, Fiduciary, Audit, Negligence, Remand (court procedure), Collusion, Chief financial officer, Pennsylvania Supreme Court

Authors:

Ann E. Pille

Location:

USA

Firm:

Reed Smith LLP

Delaware Bankruptcy Court sheds light on the common interest doctrine preventing the waiver of privileged communications

2010-11-02

The United States Bankruptcy Court for the District of Delaware (the "Delaware Bankruptcy Court"), recently in In re Leslie Controls, Inc., Bankr. D. Del., Case No. 10-12199, expounded on whether attorney-client and attorney work-product privileged documents remained protected from discovery under the common interest doctrine. The common interest doctrine permits counsel representing different clients with similar legal interests to share information without having to disclose that information to others.

Filed under: