In a prior blog post, we discussed the Second Circuit Court of Appeals’ reversal of the bankruptcy court in In re General Motors. In its opinion, the Second Circuit held that a sale of assets without proper notice to potential plaintiffs with defect claims violated the plaintiffs’ due process rights and resulted in a sale to “New GM” that was not, in fact, “free and clear” of those claims.

Sometimes the smallest bankruptcy cases give rise to the most interesting legal questions. One such case was that of ScripsAmerica, Inc., which gave rise to the question of whether the Office of the United States Trustee (the “UST”) has the statutory authority to disband a committee of unsecured creditors once a committee is appointed, or whether that authority resides with the Bankruptcy Court.

Companies that the Financial Stability Oversight Council (FSOC) believes may be subject to FDIC receivership under the Orderly Liquidation Authority contained in Title II of the Dodd-Frank Act, and certain of their affiliates, are now subject to recordkeeping requirements related to their “qualified financial contracts”1 (QFCs).

Introduction

In a very recent decision, the U.S. District Court for the Southern District of New York determined that a negative inference to an exception to a negative covenant prevented a company from undertaking a proposed restructuring transaction. We find the case unique not because of the result necessarily, but rather because the court used the negative inference to override another express provision in the Credit Agreement.

The 61-year old Indianapolis-based appliance and electronics chain, HH Gregg, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Indiana. The company has struggled with declining sales for about four years. According to Reuters, HH Greg has a signed a term sheet with an unnamed party to purchase its assets, and it is expected to emerge from the bankruptcy process in approximately 60 days. Of its more than 220 stores, the company plans to operate about 130 normally throughout the restructuring process.

On Feb. 3, 2017, the US Treasury Department’s Office of Foreign Assets Control issued a finding of violation against Taiwan-based B Whale Corp. (BWC), a member of Taiwan-based shipping company TMT Group, for activity occurring entirely outside the United States, based on the jurisdictional finding that “BWC was a US person ...

Upcoming Committee Formation Meeting: Thursday, March 16, 2017, 1:00 p.m.

Case Name: 17-10500 (KJC)

Location: J. Caleb Boggs Federal Building 844 N. King Street 3rd Floor – Room 3209 Wilmington, DE 19801

LBOs can get messy. Such was the case for the Tribune Company, which, in conjunction with its private equity investor, borrowed approximately $10.7 billion in 2007 to finance its buyout. Soon after the LBO was completed, Tribune experienced financial difficulties that made it unable to service its new debt, and, in December 2008, the company filed for chapter 11 protection.

The Royalty Motion, or the Oil & Gas Obligations Motion, is a critical filing for exploration and production companies entering a Chapter 11 Restructuring. This Motion requests permission for the Debtor to pay outstanding pre-petition obligations for the following oil and gas industry-specific expenses: royalty and working interest obligations, joint interest billings, transportation costs, lease/land rights maintenance costs, and in s