Asarco LLC v. Noranda Mining, Inc., 844 F.3d 1201 (10th Cir. 2017). In a Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) contribution action, the Tenth Circuit ruled that a mining company, whose liability for a contaminated site had been resolved in a settlement agreement approved by the bankruptcy court, could still seek contribution against other potentially responsible parties (PRPs), claiming that it overpaid its fair share of cleanup costs for the site. Id. at 1208.
The US Commodity Futures Trading Commission’s years-long litigation against the former CEO of MF Global Holdings Ltd. has concluded with a settlement. After the brokerage firm MF Global went bankrupt in a 2011 liquidity crisis, the CFTC sued CEO Jon Corzine for dipping into nearly $1 billion of segregated client funds in an effort to obtain badly needed liquidity. The settlement requires Corzine to pay a $5 million fine out of his own pocket, rather than from insurance.
A recent decision by the United States Court of Appeals for the First Circuit provides additional guidance with respect to jurisdictional disputes that bankruptcy professionals often see in practice. In particular, the Gupta v. Quincy Med. Ctr., 2017 U.S. App. LEXIS 9814 (1st Cir. June 2, 2017) case analyzed whether a bankruptcy court had jurisdiction to adjudicate a post-sale dispute among a purchaser of estate assets and former employees of the debtors.
The Bottom Line
Court:
“You know, every piece of information and fact out there is within six degrees of separation of the debtors’ assets and financial affairs. The question is where do you draw the line?”
4/20/17 Transcript of hearing in In Re SunEdison, Inc., et al, Case No. 16-10992-smb (hereinafter “TR”), page 30 lines 6-11.
Unlike the parenting technique that requires a misbehaving child to sit in a designated area for a set amount of time, Gymboree Corporation, the well-known San Francisco-based company that operates specialty retail stores of children’s apparel, will serve its time-out before Judge Keith L. Phillips in the US Bankruptcy Court for the Eastern District of Virginia.
Over the past several years, non-recourse receivables financing has been embraced by many major financial institutions and non-bank investors in the US market. With its (i) favorable regulatory treatment for regulated institutions, (ii) perceived positive risk/reward profile and (iii) adaptability to recent technological advancements such as distributed ledger technology (i.e., blockchain), non-recourse receivables financing likely will grow increasingly popular in the US market.
TRANSACTIONAL
LITIGATION/CONTROVERSY
June 8, 2017
Bankruptcy Alert
Insolvency at Its Limits: What Management and Creditors of Insolvent LLCs and LPs Should Know About Fiduciary Duties Waivers and Standing, Inside and Outside of Bankruptcy
By Isley M. Gostin, Craig Goldblatt and George W. Shuster, Jr.
Even with all the development of the last 20 years, Brooklyn, the most populous of New York City’s five boroughs, now approaching 2.7 million residents, continues to attract strong interest from developers, each scouring the borough to see where value can be created. Development generates demand as new residents require new retail and amenity services and increasingly new office clusters for entrepreneurs freed from the Manhattan central business districts by technology and preferring to locate closer to where their employees live.