Code vs. contract: Fifth Circuit holds that section 506(b) governs recovery of proceeds from a foreclosure sale after the automatic stay has been lifted

When an oversecured creditor forecloses on a debtor’s property after the automatic stay has been lifted, does the Bankruptcy Code (as opposed to state law) govern recovery of attorney’s fees and other amounts from the sale proceeds? Does the bankruptcy court have jurisdiction over the distribution of such proceeds? In Goldsby v.

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, Foreclosure, Wells Fargo, United States bankruptcy court, Fifth Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Contract remedies in the face of imminent default – what happens to state law adequate assurance and anticipatory breach in bankruptcy?

In the approach to bankruptcy, struggling businesses may experience problems performing their contracts, and counterparties often see trouble on the horizon. What can a non-debtor counterparty do to protect itself? And how are its rights impaired when the debtor finally commences a bankruptcy case?

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debtor, Breach of contract
Location:
USA
Firm:
Weil Gotshal & Manges LLP
A Foreign Entity May be Subject to U.S. Bankruptcy Court Jurisdiction Simply by Utilizing a U.S. Bank Account in a Transaction with Another Foreign Entity

A foreign (non-U.S.) company can be dragged unwillingly into a U.S. bankruptcy case if the bankruptcy court has “personal jurisdiction” over the company.

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
Authors:
Ronit J. Berkovich , Furqaan Siddiqui
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Can you object to a claim just because it doesn’t include supporting documentation? The answer may not be as simple as you think

“Smokey, this is not ‘Nam. This is [bankruptcy]. There are rules.”
– Walter Sobchak, The Big Lebowski (as modified)

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
Location:
USA
Firm:
Weil Gotshal & Manges LLP
What the future holds for make-whole claims in bankruptcy: examining the Energy Future Holdings EFIH first lien make-whole decision – part 2

Today, we follow up on our earlier post where we reviewed the United States Bankruptcy Court for the District of Delaware’s decision in Energy Future Holdings

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
Authors:
Jessica Liou
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Citing plain language of Bankruptcy Code and split with other Circuits, Fifth Circuit overturns pro-snax decision

Prior to the enactment of the Bankruptcy Code in 1978, the Fifth Circuit took a stringent approach to the payment of attorney’s fees – holding that public policy supported restricting attorney compensation in bankruptcy cases and that attorneys should not expect to receive the same compensation as if working for a non-bankrupt concern.  Congress enacted 

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Fifth Circuit
Authors:
Brenda L. Funk
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Bankruptcy is a battlefield, but the fight is over when you shake on it

All’s fair in love bankruptcy and war . . . except when one side decides to keep fighting after there’s been a truce.  The petitioning creditors in In re BG Petroleum, LLC, a recent decision from the Bankruptcy Court for the Western District of Pennsylvania, apparently forgot this rule.

Filed under:
USA, Pennsylvania, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy
Location:
USA
Firm:
Weil Gotshal & Manges LLP
ABI chapter 11 Reform Commission series: labor and benefits

In this installment of the Weil Bankruptcy Blog’s series on the ABI Commission Report, we consider the Commission’s recommendations on collective bargaining agreements under section 1113 and retiree benefits under section 1114 of the Bankruptcy Code.

Section 1113: The Commission’s Considerations

Filed under:
USA, Employment & Labor, Insolvency & Restructuring, Weil Gotshal & Manges LLP, Breach of contract, Collective bargaining
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Postpetition ratification of prepetition stay waivers – a possible end around of the general prohibition against prepetition waivers of bankruptcy rights?

“The past can’t hurt you anymore, not unless you let it.” – Alan Moore, V for Vendetta

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debtor, Debtor in possession
Location:
USA
Firm:
Weil Gotshal & Manges LLP
If it looks like a duck and quacks like a duck, then…: Kansas bankruptcy court finds car “lease” is a disguised financing based on economic realities of transaction

When a contract looks like a lease, but operates more like a security agreement, how should the contract be treated in bankruptcy? The United States Bankruptcy Court for the District of Kansas recently considered this question in 

Filed under:
USA, Kansas, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
Location:
USA
Firm:
Weil Gotshal & Manges LLP