This is the fifth in a series of Alerts regarding the proposals made by the American Bankruptcy Institute Commission to Reform Chapter 11 Business Bankruptcies. This alert covers the Commission’s recommendations regarding the now predominant practice of selling substantially all of the debtor’s assets as a going concern, free of all claims, at the outset of a bankruptcy case. The process, known as a “363 Sale” for the Bankruptcy Code section that applies, has been hailed as a job-saving measure and condemned for giving all value to lenders and none to other creditors.

Last week, we reviewed the recent decision of the Bankruptcy Court for the Southern District of New York that granted recognition to the Brazilian bankruptcy proceedings of three entities in the OAS Group (“OAS”), a Brazilian infrastructure enterprise. Part I of this series focused on the facts of the OAS cases and the objections to recognition interposed by two signific

Key Takeaway:  Second Circuit allows secured
creditors to opt out of chapter 11 and preserve their liens from discharge.

In a surprise move, the Fifth Circuit vacated its recent, controversial Golf Channel opinion, potentially giving the Golf Channel a second chance in a case that seemed lost.  As I discussed in my previous post, the Fifth Circuit recently held that the Golf Channel had to return over $5.9 million in payments it had received from Ponzi schemer Allen Stanford’s Stanford International Bank, pursuant

The Bankruptcy Code is federal law. It affords debtors protections - including the automatic stay and debt discharge injunction - that hold creditors at bay.

The Fair Debt Collection Practices Act (“FDCPA”) is also federal law. It contains limitations on what a debt collector can do when attempting to collect a debt.

Because debts - and more particularly attempts to collect those debts - drive people into bankruptcy, bankruptcy courts are sometimes forced to grapple with questions of how the Bankruptcy Code and FDCPA interact and impact each other.

You have heard the rumor that one of your clients or customers is on the verge of bankruptcy. What should you do? Although your instinct may be to suspend all dealings with them for fear of total loss in the abyss of bankruptcy, you should not over-react. With proper assistance, you can safely navigate as a creditor in even the murkiest waters.

On Jan. 21, in Official Committee of Unsecured Creditors of Motors Liquidation v. JPMorgan Chase Bank (In re Motors Liquidation), No. 13-2187, (2d Cir. Jan. 21, 2015), the U.S. Court of Appeals for the Second Circuit addressed whether a UCC-3 termination statement, which was improperly filed as part of the repayment of an unrelated loan, may be considered effective to terminate the security interest in question, even where none of the parties intended that result.

Mark Vacha, Public & Project Finance, summarizes and highlights some of the significant points of the City of San Bernardino's proposed plan for the adjustment of its debts (as proposed and filed on May 29, 2015 in bankruptcy court). Mark also discusses the public finance concern of how different types of bondholders, creditors and other stakeholders are treated and the take-aways from this case for general governmental credits.

“Startin’ to feel like there’s nothin’ left to talk about but the, money, money

Bill collectors keep comin’ . . . to get money, money”

-Curtis James Jackson, III – “Money”

Introduction