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    “Caveat Emptor”: New York Bankruptcy Court Disallows Bankruptcy Claims Purchased from Recipients of Avoidable Transfers; Is Enron Going, Going, . . . ?
    2020-05-26

    A recent Bankruptcy Court decision, In re Firestar Diamond, Inc., out of the Southern District of New York (“SDNY”) by Bankruptcy Judge Sean H.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Due diligence, Title 11 of the US Code
    Authors:
    Michele C. Maman , Eric Waxman
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    CFTC Proposes "Comprehensive Update" to Bankruptcy Regulations
    2020-04-15

    The CFTC proposed amendments intended to "comprehensively update" its bankruptcy regulations (Part 190 of the CFTC regulations) to "reflect current market practices and lessons learned."

    In the proposal, the CFTC provided:

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Cadwalader Wickersham & Taft LLP, Commodity Futures Trading Commission (USA)
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Not All Commitments Are Treated Equal
    2020-01-31

    In recent weeks, a number of transactions have come across our desks involving levered feeders set up as an investment vehicle for insurance-related investors. For regulatory reasons, these vehicles are established such that each such investor’s commitment is comprised of both a loan commitment (the “Debt Commitment”) and an equity commitment (the “Equity Commitment”). This structure presents a challenge for lenders trying to balance the requested borrowing base treatment for investor commitments of this type against the potential bankruptcy implications that this structure poses.

    Filed under:
    USA, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Debtor, Private equity, Investment funds
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    No, You’re a Customer: Recent Second Circuit Decision Circumscribes Merit and Preempts State Law Impairment of Safe Harbor Protections in the Wake of a Failed LBO
    2020-01-07

    On December 19, 2019, the United States Court of Appeals for the Second Circuit (the “Second Circuit”) affirmed a ruling of the United States District Court for the Southern District of New York (the “District Court”) dismissing constructive fraudulent conveyance claims brought by representatives of certain unsecured creditors of Chapter 11 debtor Tribune Company (“Tribune”)

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Title 11 of the US Code
    Authors:
    Ingrid Bagby , Michele C. Maman , Eric Waxman , Samantha Greenfield
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    California DFPI Requests Public Comment on Crypto Asset-Related Financial Products and Services Under California Consumer Financial Protection Law
    2022-06-03

    On June 1, the California Department of Financial Protection and Innovation (DFPI) released an invitation for comment on the DFPI’s regulatory approach to crypto asset-related financial products and services, as well as the potential regulation of such products and services under the California Consumer Financial Protection Law (CCFPL).

    Filed under:
    USA, California, Banking, Insolvency & Restructuring, Blockchain
    Location:
    USA
    NY Court Blocks Mezzanine Lender’s UCC Foreclosure Sale in Light of COVID-19 Pandemic
    2020-07-07

    On June 23, the New York County Supreme Court issued a rare preliminary injunction temporarily halting a mezzanine lender’s UCC foreclosure sale of the Mark Hotel in New York City because the procedures for the foreclosure sale were not commercially reasonable in light of conditions caused by the COVID-19 pandemic (D2 Mark LLC v. Orei VI Investments LLC, 2020 WL 3432950 (2020)).

    Filed under:
    USA, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Troutman Pepper, Due diligence, Non-disclosure agreement, Coronavirus
    Authors:
    Deborah J. Enea
    Location:
    USA
    Firm:
    Troutman Pepper
    Stay Relief Orders Denied With Prejudice Immediately Appealable
    2020-02-06

    A critical bankruptcy litigation issue has finally been resolved by the U.S. Supreme Court. Until recently, litigants had been faced with the dilemma of whether to immediately appeal a denial with prejudice of a request for stay relief or wait until the underlying matter had been fully adjudicated. Given the uncertainty, parties remained unsure if they risked losing the ability to challenge the denial of stay relief by a bankruptcy court if they waited to appeal. Now it is clear that they will. In Ritzen Group v. Jackson Masonry, 589 U.S.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Troutman Pepper
    Authors:
    Francis J. Lawall
    Location:
    USA
    Firm:
    Troutman Pepper
    Supreme Court Decides the Appropriate Standard for Determining Whether a Creditor Has Violated the Bankruptcy Code’s Discharge Injunction
    2019-06-07

    It is well settled that the purpose of filing a bankruptcy petition is to “give[] the honest but unfortunate debtor . . . a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt.” Local Loan Co. v. Hunt, 292 U.S. 234, (1934). A debtor’s discharge in bankruptcy, and the corresponding injunction provisions of the Bankruptcy Code, are the two primary elements that effectuate this financial fresh start.Chapman v. Bituminous Ins. Co. (In re Coho Res., Inc.), 345 F.3d 338, 342 (5th Cir. 2003).

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Troutman Pepper
    Authors:
    Richard E. Hagerty , David N. Anthony
    Location:
    USA
    Firm:
    Troutman Pepper
    N.D. Ill. Applies “Competent Lawyer” Standard to Dismiss FDCPA Claims Based on Collection Letter Sent to Consumer’s Attorney
    2018-10-26

    The Northern District of Illinois recently held that a collection letter sent to a consumer’s attorney seeking payment on a debt discharged in bankruptcy did not violate the Fair Debt Collection Practices Act based on the “competent lawyer” standard. The case is Grajny v. Credit Control, LLC, No. 18-C-2719, 2018 U.S. Dist. LEXIS 173682, 2018 WL 4905019 (N.D. Ill. Oct. 9, 2018).

    Filed under:
    USA, Illinois, Company & Commercial, Insolvency & Restructuring, Litigation, Troutman Pepper, Bankruptcy discharge, Fair Debt Collection Practices Act 1977 (USA), US District Court for Northern District of Illinois
    Location:
    USA
    Firm:
    Troutman Pepper
    Cannabis Industry FAQ
    2017-07-18

    Can marijuana businesses receive federal copyright protection?

    Yes. The requirements for registration with the U.S. Copyright Office are that the work is original, creative and fixed in some form of expression. These requirements do not prevent a marijuana business from registering its works, such as pamphlets, instructional videos or even artwork.

    Can marijuana businesses receive any patent protection?

    Filed under:
    USA, Banking, Company & Commercial, Copyrights, Healthcare & Life Sciences, Insolvency & Restructuring, Patents, Real Estate, Tax, Trademarks, White Collar Crime, Troutman Pepper, Financial Crimes Enforcement Network (USA)
    Location:
    USA
    Firm:
    Troutman Pepper

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