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    Discrimination in classification of claims okay, so long as not unfair discrimination
    2013-02-18

    In re Sea Trail Corporation, Case No. 11-07370- 8-SWH (Bankr. E.D.N.C., Oct. 23, 2012)

    CASE SNAPSHOT

    Filed under:
    USA, North Carolina, Insolvency & Restructuring, Litigation, Reed Smith LLP, Shareholder, Debtor, Unsecured debt, Discrimination, Market liquidity, Liquidation
    Authors:
    Joseph D. Filloy
    Location:
    USA
    Firm:
    Reed Smith LLP
    Distributions from an investment advisor to its customers may not be protected transactions under Section 546(e) of the Bankruptcy Code
    2013-01-24

    CASE SNAPSHOT

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Security (finance), Safe harbor (law), Commodity, Liquidation, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Luke A. Sizemore
    Location:
    USA
    Firm:
    Reed Smith LLP
    Illinois legislation trumps In re Crane bankruptcy court decision
    2012-12-14

    Since theIn re Crane decision was handed down by the Bankruptcy Court for the Central District of Illinois in April 2012, all eyes in the mortgage banking industry have been focused on the appeal of the decision pending in the U.S. District Court, in the hopes that the widely criticized ruling of the Bankruptcy Court would be overruled.

    Filed under:
    USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Mortgage loan, Constructive notice, United States bankruptcy court
    Authors:
    Daniel J. Slattery
    Location:
    USA
    Firm:
    Reed Smith LLP
    Another court chimes in on validity of intercreditor assignment of voting rights
    2012-10-15

    In re Coastal Broadcasting Systems, Inc., Case No. 11-10596 (Bankr. D. N.J. July 6, 2012)

    CASE SNAPSHOT

    At confirmation, the bankruptcy court considered whether the assignment of voting rights in an intercreditor agreement was enforceable. The bankruptcy court noted that various courts had reached differing conclusions, but ultimately found that the voting assignment in the intercreditor agreement before it was enforceable.

    FACTUAL BACKGROUND

    Filed under:
    USA, New Jersey, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder
    Authors:
    Elizabeth A. McGovern
    Location:
    USA
    Firm:
    Reed Smith LLP
    Secured blanket lien on inventory trumps reclamation rights
    2012-10-15

    In re Furrs Supermarkets, Inc., No. 11-01-10779 SA (Bankr. D.N.M. Aug. 15, 2012)

    CASE SNAPSHOT

    Filed under:
    USA, New Mexico, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Secured creditor, Unsecured creditor
    Authors:
    Jared S. Roach
    Location:
    USA
    Firm:
    Reed Smith LLP
    Third Circuit Court of Appeals again modifies the definition of ‘claim’ by including ‘post-petition, pre-confirmation’ exposure
    2012-10-15

    Wright v. Owens Corning, 450 B.R. 541 (W.D. Pa. 2011), aff’d in part, rev’d in part, 2012 WL 1759992 (3rd Cir. Pa.) (May 18, 2012).

    Filed under:
    USA, Pennsylvania, Insolvency & Restructuring, Litigation, Reed Smith LLP, Due process, Third Circuit
    Location:
    USA
    Firm:
    Reed Smith LLP
    ‘Contingent claim’ not sufficient to establish right of setoff for lift-stay motion
    2012-10-15

    In re WL Homes LLC, Case No. 09-10571 (Bankr. D. Del. May 16, 2012)

    CASE SNAPSHOT

    The debtor’s insurer sought to lift the automatic stay in order to setoff $2.2 million in return premiums against potential defense costs that the insurer expected to incur related to certain insurance claims made against the debtor. The court denied the motion, finding that the insurer had not established a right to setoff under either state law or the Bankruptcy Code.

    FACTUAL BACKGROUND

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Insurance, Litigation, Reed Smith LLP, Title 11 of the US Code
    Authors:
    Jared S. Roach
    Location:
    USA
    Firm:
    Reed Smith LLP
    Low-income housing tax credits must be included in valuing section 506(a) collateral
    2012-10-15

    In re Creekside Senior Apartments, LP, 2012 Fed App. 0008P (6th Cir. B.A.P. June 29, 2012)

    CASE SNAPSHOT

    In a case of first impression, the Sixth Circuit BAP held that, for purposes of valuing collateral under section 506(a) of the Bankruptcy Code, the availability of Low-Income Housing Tax Credits must be considered in valuing a creditor’s secured claim.

    FACTUAL BACKGROUND

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Tax, Reed Smith LLP, Debtor, Collateral (finance), Tax credit, Limited partnership, Sixth Circuit
    Authors:
    Ann E. Pille
    Location:
    USA
    Firm:
    Reed Smith LLP
    Third Circuit clarifies burden of proof analysis under section 506(a) valuation, and allows lien stripping in chapter 11
    2012-10-15

    In re Heritage Highgate, 679 F.3d 132 (3d Cir. 2012)

    CASE SNAPSHOT

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Collateral (finance), Legal burden of proof, Fair market value, Secured creditor, Third Circuit
    Authors:
    Christopher O. Rivas
    Location:
    USA
    Firm:
    Reed Smith LLP
    Reasonableness of pre-petition default rate under section 506(a) not subject to equitable analysis
    2012-10-15

    In re 400 Walnut Associates, L.P., 2012 BL 140988 (E.D. Pa. June 7, 2012)

    CASE SNAPSHOT

    The creditor appealed the denial of its claim for pre-petition interest at the contractual default rate. The district court reversed and remanded the case, holding that the bankruptcy court had incorrectly applied an "equitable analysis" in making its decision.

    FACTUAL BACKGROUND

    Filed under:
    USA, Pennsylvania, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Interest, Default (law), Default (finance), Title 11 of the US Code, United States bankruptcy court
    Authors:
    Joseph D. Filloy
    Location:
    USA
    Firm:
    Reed Smith LLP

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