Court breaks from majority rule, granting retirees post-petition rights greater than pre-petition rights

IUE-CWA v Visteon Corporation, 2010 WL 2735715 (3rd Cir July 13, 2010)

CASE SNAPSHOT

Filed under:
USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Life insurance, Good faith, Collective bargaining agreements, Majority opinion, US Congress, Communications Workers of America, Trustee, Second Circuit, United States bankruptcy court, Third Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Broader economic woes may have played a part in the court’s decision to dismiss allegations of lender overreaching

American Consolidated Transportation Companies, Inc v RBS Citizens NA (In re American Consolidated Transportation Companies, Inc), Adversary No 10-00154, Bankruptcy No 09-26062 (Bankr ND Ill July 13, 2010)

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Filed under:
USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Letter of credit, Credit (finance), Debtor, Interest, Swap (finance), Liquidation, Good faith, Cashflow, Default (finance), Secured loan, The Royal Bank of Scotland, United States bankruptcy court
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP
Risk losing your first priority lien if you provide superfluous information in the UCC financing statement

In re EDM Corporation, 2010 WL 1929772 (8th Cir BAP May 14, 2010)

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Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Safe harbor (law), Uniform Commercial Code (USA), Bankruptcy Appellate Panel
Authors:
Cory Falgowski
Location:
USA
Firm:
Reed Smith LLP
Sanctions awarded under the bankruptcy court’s ‘inherent authority’

In re 15375 Memorial Corporation, et al, 430 BR 142 (Bankr D Del May 17, 2010)

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Filed under:
USA, Delaware, Energy & Natural Resources, Environment & Climate Change, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Debtor, Discovery, Legal burden of proof, Holding company, Involuntary dismissal, Line of credit, United States bankruptcy court, Third Circuit
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Texas district court affirms the contractual default interest rate where the debtor is solvent

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

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

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

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:
USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Waiver, Interest, Work-product doctrine, Attorney-client privilege, Discovery, United States bankruptcy court, US District Court for District of Delaware
Authors:
Brian M. Rostocki
Location:
USA
Firm:
Reed Smith LLP
Post-confirmation cramdown interest rate: ‘market formula’ applies to oversecured

In re SJT Ventures, LLC, 2010 WL 3342206 (Bankr. N.D. Texas 2010)

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Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Limited liability company, Default (finance), Secured creditor, Commercial mortgage, Secured loan, Title 11 of the US Code, United States bankruptcy court
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Undersecured mortgage lenders may include fees & costs in arrearage cure amount of chapter 13 debtor under section 1322(e)

Deutsche Bank National Trust Co. v. Tucker, No. 09-5867 (6th Cir. 2010)

CASE SNAPSHOT

In resolving a conflict within the Sixth Circuit, the Court of Appeals has held that chapter 13 debtors who propose in their plan of reorganization to cure the arrearage on their mortgage loan are required to pay all fees and costs required by the mortgage and non-bankruptcy law, even if the mortgage lender is undersecured. Put another way, mortgage lenders may include such fees and costs in their proofs of claim.

FACTUAL BACKGROUND

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Debtor, Statutory interpretation, Mortgage loan, Remand (court procedure), US Congress, Deutsche Bank, United States bankruptcy court, Sixth Circuit
Authors:
Barbara K. Hager
Location:
USA
Firm:
Reed Smith LLP
In a case of first impression, the circuit court determines that a trustee of a securitized investment pool is a ‘transferee’ in a preference action

Paloian v LaSalle Bank, NA, 619 F.3d 688 (7th Cir. 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Medicaid, Legal personality, Debtor, Accounts receivable, Limited liability company, Remand (court procedure), Tax return (USA), Investment funds, Cashflow, Discounted cash flow, Trustee, United States bankruptcy court, Seventh Circuit
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP