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

Collateral-order doctrine utilized in a case of first impression; court affirms broad equitable powers of a receiver

2011-06-15

Securities and Exchange Commission v. Wealth Management, LLC, et al., 628 F.3d 323 (7th Cir. 2011)

CASE SNAPSHOT

Filed under:

USA, Capital Markets, Insolvency & Restructuring, Litigation, White Collar Crime, Reed Smith LLP, Collateral (finance), Security (finance), Market liquidity, Federal Reporter, Limited liability company, Hedge funds, Life insurance, Limited partnership, Bond credit rating, Pro rata, US Securities and Exchange Commission, Seventh Circuit

Authors:

Location:

Firm:

Claims trader loses out on cure payments where debtor’s approved plan permits postconfirmation rejection of executory contracts

2011-06-15

ReGen Capital I, Inc. v. UAL Corporation, et al., (In the Matter of UAL Corporation, et al.), 635 F.3d 312 (7th Cir. 2011).

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Telecoms, Reed Smith LLP, Bankruptcy, Debtor, Unsecured debt, Security (finance), Interest, Federal Reporter, Default (finance), United Airlines, Second Circuit, United States bankruptcy court, Seventh Circuit

Authors:

Christopher O. Rivas

Location:

Firm:

FAA registration law does not preempt state UCC where partially completed airplanes fail to satisfy FAA definition of “aircraft”

2011-06-15

Mata, et al., v. Eclipse Aerospace, Inc. (In re AE Liquidation, Inc., et al.) Case No. 08-51891, 2011 BL 51047 (Bankr. D. Del. Feb. 28, 2011)

CASE SNAPSHOT

Filed under:

USA, Delaware, Aviation, Insolvency & Restructuring, Litigation, Reed Smith LLP, Federal preemption, Debtor, Breach of contract, Fraud, Liquidation, Aircraft registration, Constructive trust, Federal Aviation Administration, Uniform Commercial Code (USA), Trustee, United States bankruptcy court

Authors:

Kathleen A. Murphy

Location:

Firm:

What you need to know about the proposed new liquidation regime under Dodd-Frank

2011-06-15

Under the proposed new insolvency regime created by Dodd-Frank, the FDIC may be appointed as receiver of a financial company if it is determined that the financial company is in default or in danger of default, and the failure of the financial company would have serious adverse effects on financial stability in the United States.The receiver is required to liquidate the failing financial company in a manner that imposes all losses on the company’s creditors and shareholders (rather than on taxpayers).

Filed under:

USA, Banking, Insolvency & Restructuring, Reed Smith LLP, Shareholder, Unsecured debt, Interest, Liquidation, Judicial review, Default (finance), Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)

Authors:

Peter S. Clark, II

Location:

Firm:

Security interest in FCC license and proceeds thereof is ‘after-acquired’ property where no sale agreement executed pre-petition, wiping out lender’s lien

2011-06-15

Spectrum Scan LLC and Joli Lofstedt, Trustee v. Valley Bank & Trust Co. (In re Tracy Broadcasting Corporation), 438 B.R. 323 (Bankr. D. Colo. 2010)

CASE SNAPSHOT

Filed under:

USA, Colorado, Insolvency & Restructuring, Litigation, Media & Entertainment, Reed Smith LLP, Debtor, Unsecured debt, Collateral (finance), Intangible asset, Unsecured creditor, Federal Communications Commission (USA), Title 11 of the US Code, Uniform Commercial Code (USA), Trustee, Fourth Circuit, Tenth Circuit

Authors:

Christopher O. Rivas

Location:

Firm:

Debtor unable to provide adequate assurance; court denies motions to use cash collateral and obtain DIP financing priming original lien

2011-06-15

In re LTAP US, LLLP, Case No. 10-14125 (KG) (Bankr. D. Del. Feb. 18, 2011)

CASE SNAPSHOT

Filed under:

USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Consideration, Life insurance, Cashflow, Secured loan, United States bankruptcy court

Authors:

Location:

Firm:

Court holds that ‘all value’ must be considered in determining ‘reasonably equivalent value’ in fraudulent transfer case

2011-06-15

First State Bank of Red Bud v. Official Committee of Unsecured Creditors (In re Schaffer), No. 10-198- GPM, 2011 WL 1118666 (S.D. Ill. March 28, 2011)

CASE SNAPSHOT

Filed under:

USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder, Debtor, Collateral (finance), Consideration, Debt, Mortgage loan, Foreclosure, Title 11 of the US Code, United States bankruptcy court

Authors:

Brian M. Schenker

Location:

Firm:

Court vacates the foreclosure sale and awards damages, finding that the lender violated the automatic stay by proceeding with the sale where debtor guaranteed the loan, but had no ownership interest

2011-06-15

In re Ebadi, No. 10-73702, 2011 WL 1257211 (Bankr. E.D.N.Y. March 30, 2011)

CASE SNAPSHOT

Filed under:

USA, New York, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Punitive damages, Bankruptcy, Surety, Debtor, Interest, Debt, Mortgage loan, Foreclosure, Second Circuit, United States bankruptcy court

Authors:

Brian M. Schenker

Location:

Firm:

Priming lien approved: new loan use would benefit the estate + debtor’s sizable equity cushion = adequate assurance

2011-06-15

In re Olde Prairie Block Owner, LLC, Bankr. No. 10B22668 (Bankr. N.D. Ill. March 11, 2011)

CASE SNAPSHOT

Filed under:

USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Credit (finance), Debtor, Unsecured debt, Tax credit, Property tax, Limited liability company, Debt, Foreclosure, Default (finance), Secured loan, United States bankruptcy court

Authors:

Location:

Firm: