Arizona insurance department places PMI Mortgage Insurance Company into receivership

On October 20, 2011, the Director of the Arizona Department of Insurance filed a Complaint to place PMI Mortgage Insurance Company (PMI) into receivership in Arizona. In an interim Order, the court required the director, as Receiver, to take possession and control of PMI, which had been under the formal supervision of the insurance department since August 19, 2011. The court also directed that certain related affiliates of PMI be placed under administrative supervision.

Filed under:
USA, Arizona, Banking, Insolvency & Restructuring, Insurance, Reed Smith LLP, Bankruptcy, Debtor, Interest, Debt, Mortgage loan, Liability (financial accounting), Reinsurance, Liquidation, Default (finance), Form 8-K, Delaware General Corporation Law, United States bankruptcy court
Location:
USA
Firm:
Reed Smith LLP
MF Global U.S. bankruptcy first day hearing leaves questions unanswered

The first day hearings in the Chapter 11 cases of MF Global Holdings Ltd and MF Global Finance USA Inc (together the "Debtors") were held on 1 November 2011 before Judge Martin Glenn in the U.S. Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court").

Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Collateral (finance), Clearing house (finance), Market liquidity, Accounting, Broker-dealer, Credit rating, JPMorgan Chase, United States bankruptcy court
Authors:
Elizabeth A. McGovern , Victoria Thompson
Location:
USA
Firm:
Reed Smith LLP
Subrogation to ‘claims’ entitles subrogee to vote on behalf of itself and subrogor

Avondale Gateway Center Entitlement, LLC v. National Bank of Arizona, et al. (In re Avondale Gateway Center Entitlement, LLC), 2011 WL 1376997 (D. Ariz. Apr. 12, 2011)

CASE SNAPSHOT

Filed under:
USA, Arizona, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Limited liability company, Debt, Voting, Capital punishment, Title 11 of the US Code, Arizona Supreme Court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Split in courts continues—private stock purchase payments not protected by Section 546 safe harbor

Geltzer v. Mooney (In re MacMenamin’s Grill Ltd.), Adv. Case. No. 09-8266, Bankr. Case No. 08-23660, 2011 WL 1549056 (Bankr. S.D.N.Y. Apr. 21, 2011)

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Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder, Debtor, Security (finance), Fraud, Safe harbor (law), Writ, Leveraged buyout, Systemic risk, Secured loan, Title 11 of the US Code, Trustee, United States bankruptcy court
Authors:
Brian M. Schenker
Location:
USA
Firm:
Reed Smith LLP
Credit swap agreement ipso facto clause struck

Lehman Brothers Special Financing, Inc. v. Ballyrock ABS-CDO 2007-1 Limited (In re Lehman Brothers Holdings, Inc.) No. 09-01032 (JMP) (Bankr. S.D.N.Y. May 12, 2011)  

CASE SNAPSHOT

Filed under:
USA, New York, Derivatives, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Surety, Debtor, Injunction, Swap (finance), Liquidation, Asset forfeiture, Default (finance), Collateralized debt obligation, Mortgage-backed security, Right to property, Lehman Brothers, US District Court for the Southern District of New York
Authors:
Kathleen A. Murphy
Location:
USA
Firm:
Reed Smith LLP
Bad boy guaranties

We all know that many large commercial real estate loan transactions include “bad boy” guaranties from the principals of the borrower which spring into action upon the occurrence of certain events, like the filing of a bankruptcy petition. Some borrowers do not take these guaranties seriously since they think that they are in violation of public policy and/or constitute an unenforceable penalty.

Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Conflict of interest, Shareholder, Surety, Debtor, Commercial property, Fiduciary, Interest, Mortgage loan, Bank of America
Authors:
Peter S. Clark, II
Location:
USA
Firm:
Reed Smith LLP
Parent company’s motion to dismiss claim of breach of fiduciary duty denied

In re Tronox Incorporated, et al., 2011 WL 1815149 (Bankr. S.D.N.Y. May 11, 2011)

CASE SNAPSHOT

Filed under:
USA, New York, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bond (finance), Environmental remediation, Shareholder, Breach of contract, Fiduciary, Debt, Liability (financial accounting), Holding company, Initial public offerings, Subsidiary, Conspiracy (civil), Parent company, US District Court for the Southern District of New York
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Shareholders permitted to retain ownership under ‘new value exception’ to ‘absolute priority rule’

In re Red Mountain Machinery Company, 448 B.R. 1 (Bankr. D. Ariz. 2011)

CASE SNAPSHOT

Filed under:
USA, Arizona, Insolvency & Restructuring, Litigation, Reed Smith LLP, Shareholder, Debtor, Unsecured debt, Interest, Line of credit, Chief financial officer, United States bankruptcy court
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Drafting tips for trademark licenses: is your trademark agreement a trademark license, a service agreement—or both? The answer could affect the ability of a licensee in bankruptcy to assign rights regarding the trademark.

In re XMH Corp., Nos. 10-2596, 10-2597, 10- 2598 and 10-2599 (7th Cir. July 26, 2011)  

CASE SNAPSHOT

The Seventh Circuit Court of Appeals recently answered the following questions: (a) whether, under the Bankruptcy Code, a trademark license is assignable (that is, salable) without the licensor’s permission, in the absence of a clause in the agreement stating that it is assignable (NO); and (b) whether a trademark license can be “implied” in an agreement that does not say it’s a trademark license (NO).

FACTUAL BACKGROUND

Filed under:
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Conflict of laws, Debtor, Federal Reporter, Marketing, Constitutional amendment, United States bankruptcy court, Seventh Circuit
Location:
USA
Firm:
Reed Smith LLP
Unable to show ‘indubitable equivalence’ where property appraisals diverge significantly

In re Prosperity Park, LLC, 2011 WL 1878210 (Bankr. W.D.N.C. May 17, 2011)  

CASE SNAPSHOT

Filed under:
USA, North Carolina, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Unsecured debt, Collateral (finance), Discrimination, Limited liability company, Debt, Legal burden of proof, Liquidation, Deed of trust (real estate), Secured loan
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP