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

Bank loses possessory lien following turnover of funds to trustee – should have sought adequate protection

2013-06-12

In re WEB2B Payment Solutions, Inc., 2013 WL 1188041 (8th Cir. BAP, Mar. 26, 2013)

CASE SNAPSHOT

The bank, which held a possessory lien in the deposit account of the debtor, lost its lien when it turned over the funds in the account to the trustee upon his turnover demand, because the bank failed to seek adequate protection prior to turning over the funds.

FACTUAL BACKGROUND

Filed under:

USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Collateral (finance)

Authors:

Christopher O. Rivas

Location:

USA

Firm:

Reed Smith LLP

Debtor had legitimate business reason to separately classify unsecured claims

2013-06-12

In re Burcam Capital II, LLC, Case No. 12-04729-8-JRL (Bankr. E.D.N.C., Feb. 15, 2013)

CASE SNAPSHOT

Filed under:

USA, North Carolina, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Secured creditor, Deed of trust (real estate)

Authors:

Alison Wickizer Toepp

Location:

USA

Firm:

Reed Smith LLP

Creditor defeats preference action based on ‘new value’ defense

2013-06-12

In re ESA Environmental Specialists, Inc., 2013 WL 765705 (4th Cir., Mar. 1, 2013)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Insurance, Litigation, Projects & Procurement, Reed Smith LLP, Letter of credit, Debtor, Collateral (finance), Debt, Liquidation, Certificate of deposit, European Space Agency, Fourth Circuit

Authors:

Joseph D. Filloy

Location:

USA

Firm:

Reed Smith LLP

Exit lenders liable for conversion where distributions contravene credit agreement

2013-06-12

Prudential Insurance Company of America v. WestLB AG, 961 N.Y.S. 2d 360 (2012)

CASE SNAPSHOT

Filed under:

USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Credit (finance), Collateral (finance)

Authors:

Brian M. Schenker

Location:

USA

Firm:

Reed Smith LLP

Tenth Circuit joins Fourth Circuit in holding that absolute priority rule applies to individual chapter 11 cases

2013-06-12

Dill Oil Company, LLC v. Stephens, No. 11-6309 (10th Cir., Jan. 15, 2013)

CASE SNAPSHOT

The Court of Appeals for the Tenth Circuit, in a case of first impression before the court, joined the Fourth Circuit in holding that the absolute priority rule remains applicable in individual chapter 11 cases.

FACTUAL BACKGROUND

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Secured creditor, United States bankruptcy court, Fourth Circuit, Tenth Circuit

Authors:

Alison Wickizer Toepp

Location:

USA

Firm:

Reed Smith LLP

We greet a new Aredia-Zometa dismissal with abated breath

2013-06-05

You have almost certainly heard the phrase, “Waiting with bated breath.” As in: we awaited the Red Wedding scene in Game of Thrones with bated breath. Or: we greeted the Drug and Device Law Son's diploma ceremony with bated breath. (The former was impressive and awful. As one friend wrote on his Facebook wall, if you had a favorite character in GoT, maybe now you don't.

Filed under:

USA, Pennsylvania, Insolvency & Restructuring, Litigation, Reed Smith LLP, Estoppel

Authors:

Stephen J. McConnell

Location:

USA

Firm:

Reed Smith LLP

Cherryland update: is turnabout fair play?

2013-04-25

Last year in this space we reported on a pair of Michigan court decisions (51382 Gratiot Avenue Holdings, Inc. v. Chesterfield Development Company (Chesterfield) and Wells Fargo Bank, N.A. v.

Filed under:

USA, Michigan, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Surety

Authors:

Alex Braden

Location:

USA

Firm:

Reed Smith LLP

In re Crane reversed on appeal: Illinois statutory mortgage form held to be permissive, not mandatory; incorporation by reference held to be sufficient

2013-03-04

The United States District Court for the Central District of Illinois has arguably driven the last nail into the coffin of In re Crane, the much criticized decision of the United States Bankruptcy Court for the Central District of Illinois. The coffin was already set in place after the Illinois legislature passed S.B.0016 late last year, which was signed into law by Gov.

Filed under:

USA, Illinois, Insolvency & Restructuring, Litigation, Reed Smith LLP, Mortgage loan, Maturity (finance), United States bankruptcy court

Authors:

Daniel J. Slattery , Ann E. Pille

Location:

USA

Firm:

Reed Smith LLP

Separation of claims solely on the basis of personal guaranty not permitted

2013-02-18

In re 18 RVC, LLC, Case No. 812-72378-reg (Bankr. E.D.N.Y., Oct. 22, 2012)

CASE SNAPSHOT