Determining how to increase or preserve a debtor’s liquidity is crucial to analyzing its deleveraging options. Companies with significant labor liabilities need to explore whether attaining cost savings through rejection of their collective bargaining agreements (CBAs) is a viable alternative.  The decision from the United States Court of Appeals for the Third Circuit in 

In the latest ruling in the long-running dispute in Sentinel Management’s bankruptcy case, the Seventh Circuit recently held that a bank employee’s suspicions about the source of the bank’s collateral should have put the bank on inquiry notice, thus precluding the bank from asserting a “good faith” defense to a fraudulent transfer claim that a liquidating trustee brought against the bank.

We know that our readers are busy during this time of year with vacation travel, holiday parties, and deals closing before year end.  And we know that it’s easy to fall behind on your essential bankruptcy reading.  Our gift to you this holiday season is this look back at our last six weeks of Weil Bankruptcy Blog posts, wrapped up into three neat little packages (or posts, that is).  So grab your glass of eggnog, and put your feet up, as we recap what you may have missed. 

Insiders:  A Perennial Favorite

As we’ve previously covered in prior blog posts, Being In Love Means Never Being Able To Get Your Student Loans Discharged, Or Why Stedman Graham Should Have To Pay His Student Loans and 

Section 303(b)(1) of the Bankruptcy Code allows an involuntary petition to be filed by three or more creditors who hold non-contingent claims totaling at least $15,325 more than the liens on the debtor’s property.  Those creditors then must prove that the debtor was generally not paying its debts as they came due within the guidelines

“So many years we’ve tried
To keep our love alive
But baby it ain’t over ’til it’s over”

-Lenny Kravitz – “It Ain’t Over ’Til It’s Over”

In the latest chapter of the New Century bankruptcy cases, the Court of Appeals for the Third Circuit vacated a district court’s decision on the sufficiency of the debtors’ publication notice and remanded the case back to the district court to determine the critical issue of whether the plaintiff-appellees were known creditors entitled to actual notice. 

We had a dream we’d go trav’lin’ together
We’d spread a little lovin then we’d keep movin’ on
Trav’lin’ along there’s a song that we’re singin’,
C’mon get happy
A whole lotta lovin’ is what we’ll be bringin’,
We’ll make you happy,
We’ll make you happy

(from “C’Mon Get Happy”)

As cross-border restructurings proliferate, especially in the wake of the global COVID-19 pandemic, companies with global assets and operations may utilize chapter 15 of the U.S. Bankruptcy Code (the “Bankruptcy Code”) to facilitate cooperation between U.S. and foreign bankruptcy courts and protect assets located in the U.S. One doctrine central to relief under chapter 15 is the principle of comity, which refers to the recognition one nation’s legal system accords to another nation’s judicial proceedings. In chapter 15 proceedings, U.S.

Introduction