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    Fourth Circuit examines swap agreements subject to Bankruptcy Code safe harbors
    2009-06-24

    In Hutson v. E.I. du Pont de Nemours & Co.

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Fraud, Natural gas, Safe harbor (law), Swap (finance), Commodity, Maturity (finance), Systemic risk, Title 11 of the US Code, DuPont, United States bankruptcy court, Fourth Circuit, Trustee
    Authors:
    Mark C. Ellenberg , Leslie W. Chervokas
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Failed mitigation efforts do not prevent lessor’s claim
    2008-07-31

    In Giant Eagle, Inc. v. Phar-Mor, Inc.,1 the United States Court of Appeals for the Sixth Circuit held that a lessor-claimant whose lease was rejected pursuant to section 365(a) of Title 11 of the Bankruptcy Code was entitled to a claim for future-rent damages against the debtor, even though the lessor had entered into a nearly identical substitute lease. The Court concluded that efforts to mitigate damages by the lessor would not be considered in reducing the actual damage claim when those efforts failed to reduce the actual harm suffered by the lessor.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Unsecured debt, Breach of contract, Consideration, Liquidated damages, Default (finance), Title 11 of the US Code, United States bankruptcy court, Sixth Circuit, US District Court for Northern District of Ohio
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Bankruptcy court refuses to stay international litigation against non-debtor subsidiaries despite express statutory language giving it the power, but not the obligation, to do so
    2012-05-29

    In re Vitro, S.A.B de C.V v. ACP Master, Ltd., et al., Case No. 11-33335-HDH-15 (N.D. Tex. 2011), is a decision by a bankruptcy court but contains discussion of the issue often arising in contentious international litigation:  attempts to enjoin proceedings in other countries in favor of proceedings in the U.S., or attempts to enjoin proceedings in the U.S.

    Filed under:
    USA, Texas, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Injunction, Preliminary injunction, Title 11 of the US Code
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    U.S. district court affirms Delaware Bankruptcy Court decision in SemCrude prohibiting triangular setoff
    2010-05-25

    The United States District Court for the District of Delaware recently affirmed a Bankruptcy Court decision that invalidated the use by creditors of so-called “triangular”, or non-mutual, setoffs in which obligations are offset among not only the parties to a bilateral contract but also their affiliates. In re SemCrude, L.P., 2010 U.S. Dist. LEXIS 42477 (D. Del.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Safe harbor (law), Swap (finance), Debt, Bankruptcy of Lehman Brothers, Title 11 of the US Code, Delaware Supreme Court, United States bankruptcy court, US District Court for District of Delaware
    Authors:
    Mark C. Ellenberg , Leslie W. Chervokas
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Strategies for distressed gaming enterprises (part I)
    2009-06-24

    The current economic recession has, not surprisingly, led to a significant downturn in the domestic gaming industry. During 2008, revenue growth in the U.S. gaming industry turned negative for the first time in four years. Data for the first quarter of 2009 indicate that the monthly gaming revenues of casinos in Las Vegas and Atlantic City declined more than 15% as compared to the first quarter of last year.1 Public gaming company stock prices are down more than 80% on average, and many gaming companies have postponed or canceled development projects.

    Filed under:
    USA, Insolvency & Restructuring, Media & Entertainment, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Unsecured debt, Collateral (finance), Market liquidity, Option (finance), Debt, Maturity (finance), Casino, Corporate bond, Secured loan, Title 11 of the US Code
    Authors:
    Scott J. Greenberg , Joseph Zujkowski
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Chapter 11 does not prevent loss of liquor license
    2008-07-31

    In Go West Entertainment, Inc. v. New York Liquor Authority (In re Go West Entertainment, Inc.),1 the United States Bankruptcy Court for the Southern District of New York refused to extend the automatic stay or to utilize its other injunctive powers to prevent state regulatory authorities from revoking a debtor’s liquor license.

    Filed under:
    USA, New York, Insolvency & Restructuring, Leisure & Tourism, Litigation, Cadwalader Wickersham & Taft LLP, Debtor, Injunction, Title 11 of the US Code, United States bankruptcy court, Administrative law judge
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Delaware Bankruptcy Court Rules TCEH First Lien Distributions Are Governed by the Bankruptcy Code, Not by Intercreditor Agreement Waterfall
    2016-03-21

    On March 11, 2016, Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware issued an opinion in the Energy Future Holdings bankruptcy that resolved an intercreditor dispute over $90 million in proceeds to be distributed under the plan of reorganization.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Collateral (finance), Title 11 of the US Code, United States bankruptcy court
    Authors:
    Thomas Curtin , Mark C. Ellenberg , Howard R. Hawkins Jr. , Michele C. Maman
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Harrisburg: a case study in state law barriers to Chapter 9
    2012-01-10

    On November 23, 2011, the Bankruptcy Court for the Middle District of Pennsylvania dismissed Harrisburg, Pennsylvania’s Chapter 9 bankruptcy petition because, shortly before the filing, the state legislature expressly prohibited Harrisburg from seeking relief under Chapter 9.

    Filed under:
    USA, Pennsylvania, Insolvency & Restructuring, Litigation, Public, Cadwalader Wickersham & Taft LLP, Bankruptcy, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Lary Stromfeld
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Lehman bankruptcy court rules safe harbors do not override setoff mutuality requirement
    2010-05-06

    On May 5, 2009, Judge James Peck, the Bankruptcy Judge in the Lehman Brothers bankruptcy cases, held that the safe harbor provisions of the Bankruptcy Code do not override the mutuality requirements for setoff under section 553(a) of the Bankruptcy Code. As a consequence, the Bankruptcy Court prohibited Swedbank, a non-debtor counter party to a swap agreement, from setting off pre-petition claims against Lehman against funds collected for Lehman’s account postpetition. See In re Lehman Bros. Holdings Inc., Bankr. Case No. 08-13555 (JMP) (Bankr. S.D.N.Y.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Waiver, Safe harbor (law), Swap (finance), Debt, Concession (contract), Title 11 of the US Code, International Swaps and Derivatives Association, Lehman Brothers, United States bankruptcy court, US District Court for SDNY
    Authors:
    Mark C. Ellenberg , Leslie W. Chervokas
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Madoff and Stanford preview: Bayou Group cases established precedent for clawing back Ponzi scheme payments
    2009-03-31

    As the Madoff Securities and Stanford Financial schemes have unraveled in recent months, financial industry participants have had to scrutinize closely their involvement with these entities. A key issue in each of these cases will be the extent to which the trustee (or similar representative) can “claw back” payments made as part of the Ponzi and related fraudulent schemes. The U.S. Bankruptcy Court for the Southern District of New York recently considered similar facts in Bayou Accredited Fund, LLC v. Redwood Growth Partners, L.P.

    Filed under:
    USA, Capital Markets, Insolvency & Restructuring, Litigation, White Collar Crime, Cadwalader Wickersham & Taft LLP, Bankruptcy, Conflict of laws, Debtor, Security (finance), Fraud, Statute of limitations, Hedge funds, Good faith, Unsecured creditor, Title 11 of the US Code, United States bankruptcy court, Trustee
    Authors:
    James McDonnell
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP

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