On May 21, 2015, the United States Court of Appeals for the Third Circuit approved the settlement and dismissal of chapter 11 bankruptcy cases through a structured dismissal in rare instances. See Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc., Case No.
On June 25, 2015, Molycorp, Inc., the U.S. producer of rare earths, and its North American subsidiaries filed for chapter 11 bankruptcy protection. A copy of the bankruptcy petition is attached here. Debtors offer the declaration of Michael F.
This is the fifth post in our Bitcoin Bankruptcy series on the Weil Bankruptcy Blog. We have concluded that a hypothetical U.S.-based bitcoin exchange likely would not constitute a stockbroker or a
On May 21, 2015, the United States Court of Appeals for the Third Circuit (the “Third Circuit”) affirmed the order of the United States District Court for the District of Delaware in Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc. (In re Jevic Holding Corp.) approving a settlement and dismissal of a chapter 11 case by way of a “structured dismissal.” A structured dismissal is, simply, the dismissal of the bankruptcy case preceded by other orders, such as an order approving a settlement or granting releases, which survive dismissal of the case.
Scheme Hot Topics Bulletin: Part III Schemes vs Chapter 11 June 2015 Using the key features of our case study below, we compare schemes and Chapter 11 proceedings on the following grounds: ■ jurisdiction (filing requirements and crossborder recognition); ■ moratorium; ■ scope, i.e. which creditors can be included in (or excluded from) the relevant proceedings; ■ control; ■ new money; ■ cramdown; ■ valuation; ■ third party releases; ■ disclosure; ■ market impact; ■ timing and costs; and ■ special Chapter 11 rules on oil & gas interests.
On June 29, 2015, Baha Mar Ltd, the development company behind a $3.5 billion Bahamian resort and its affiliated debtors, filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in the U.S. District Court of Delaware. Attached here is a copy of the petition. Debtors offer the declaration of Thomas M. Dunlap in support of their first day pleadings.
A recent English High Court decision has further clarified the position on what amounts to an “abuse of process” when it comes to determining the motive behind the presentation of a winding up petition by a creditor. The High Court has ruled that only where a petition is issued for a purpose other than to ensure the equitable winding-up of a debtor company can it be considered an “abuse of process”, and goes on to outline what may constitute such an abuse.
The United States Court of Appeals for the Seventh Circuit recently held that numerous forbearances by a lender that allowed a single asset real estate borrower to stave off bankruptcy for four years provided value in the context of a constructive fraudulent transfer action. 1756 W. Lake St. LLC v. Am. Chartered Bank (In re 1756 W. Lake St. LLC), Case No. 14-1869 (7th Cir.
The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v.
Amended rules governing the issuance, service, and enforcement of periodic garnishments will go into effect on Oct. 1, 2015. The amendments will, among other changes, provide much needed protection to garnishees from the imposition of a default or default judgment resulting from administrative or ministerial errors and will also streamline the periodic garnishment process.