syncreon Group Holdings B.V. (the “Company” and together with its subsidiaries, “syncreon”) completed its landmark financial restructuring today. As has been widely reported, syncreon’s reorganization is perhaps the first-ever use of an English scheme to restructure debt issued by a U.S.-based global enterprise. This also appears to be the first time that CCAA recognition of an English scheme has been granted.

The Restructuring

The Consumer Financial Protection Bureau published its quarterly consumer credit trends report on September 25. In the Report, the CFPB gave an in-depth look at bankruptcy trends and the impact of filing for the period 2001-2018, which includes the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) and the Great Recession.

On September 11, 2019, the Delaware district court affirmed the bankruptcy court’s decision to expunge a proof of claim filed by a claims trader in the Woodbridge Group of Companies, LLC bankruptcy case.

The U.S. Court of Appeals for the Seventh Circuit recently reversed a bankruptcy court’s ruling that a lender failed to perfect its security interest because its UCC financing statement failed to provide sufficient indication of the secured collateral under Article 9 of the Uniform Commercial Code.

In 1930, Clarence Bennett’s wealthy uncle died. He left behind shares in Berry Holding Company ("BHC") that were subdivided into three groups. Bennett was the beneficiary of dividends paid out of one of these groups and, for many years, received his share of dividends from BHC. In 1986, BHC became Berry Petroleum Company ("BPC"), a publicly traded company, and Bennett’s interest changed.

A New Jersey District Court recently addressed several issues in connection with the appointment of a future claims representative (“FCR”). In light of the recent increase in mass-tort bankruptcy cases, exploring these issues is timely.

Background

Payments owed to a shareholder by a bankrupt debtor, which are not quite dividends but which certainly look a lot like dividends, should be treated like the equity interests of a shareholder and subordinated to claims by creditors of the debtor,” held the U.S. Court of Appeals for the Fifth Circuit on Sept. 3, 2019. In re Linn Energy, LLC, 2019 WL 4149481 (5th Cir. Sept. 3, 2019).

We’re still a month away from Halloween, but TCPAWorld has just become even scarier.

I have frequently remarked on the unfairness of individual corporate officers being held individually and personally liable for TCPA violations committed by corporate entities. That sometimes means liability well into the millions of dollars in personal exposure for individuals based upon actions taken by companies these individuals helped run. Well imagine, for a moment, if all that exposure were deemed non-dischargeable in bankruptcy. Horrifying right?

When one of your customers files bankruptcy, it can cause significant disruption in your own business, especially where you do substantial business with that customer, or it files for bankruptcy owing you a substantial amount of money. The impact on your business includes not only the prospect of not being paid or receiving very little on unpaid invoices but also the loss of future business from the bankrupt customer.

Congress recently passed and the President signed into law the Small Business Reorganization Act of 2019. This Act will provide broader bankruptcy relief to individuals engaged in business with aggregate debts of $2,725,625 or less. This debt limit is subject to adjustment every three years.