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    Recent significant commercial bankruptcy filings
    2010-06-21

    Masuda, Funai, Eifert & Mitchell routinely represents creditors in bankruptcy proceedings in order to protect their contractual and legal interests and rights to payment. The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.  

    PAPER

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Masuda Funai Eifert & Mitchell Ltd, Bankruptcy, Debtor, Unsecured debt, Recycling, Subsidiary, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Reinhold F. Krammer
    Location:
    USA
    Firm:
    Masuda Funai Eifert & Mitchell Ltd
    Corporate dissolution
    2010-06-18

    In re Texas Eastern Overseas, Inc., 2009 WL 4270799 (Del. Ch. Nov. 30, 2009).  

    This suit involved Petitioner AmeriPride Services Inc. (“AmeriPride”)’s motion for the appointment of a receiver pursuant to 8 Del. C.

    Filed under:
    USA, Environment & Climate Change, Insolvency & Restructuring, Litigation, Potter Anderson & Corroon LLP, Contamination, Interest, Westlaw, Court of Chancery, Delaware Supreme Court
    Location:
    USA
    Firm:
    Potter Anderson & Corroon LLP
    Bankruptcy sale found insufficient to support assessment reduction
    2010-06-18

    Generally the best evidence of a property’s market value is a recent sale price, but that is not always the case. The First District Appellate Court recently ruled in Calumet Transfer LLC v.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Tax, Franczek Radelet PC, Bankruptcy, Property tax, Limited liability company, Foreclosure, Market value, Inflation
    Authors:
    Ares G. Dalianis , Scott R. Metcalf
    Location:
    USA
    Firm:
    Franczek Radelet PC
    Florida Supreme Court rules debtor may not use single-member LLC to shield assets from judgment creditor
    2010-06-28

    In a much anticipated decision, the Florida Supreme Court closed a statutory loophole that permitted debtors to use a wholly owned limited liability company (LLC) to put their assets beyond the reach of their judgment creditors. In Olmstead v. FTC, Case No. SC08-1009 (Fla. June 24, 2010), the Florida Supreme Court ruled that a court may order a judgment debtor to surrender all right, title, and interest in the debtor's single-member Florida limited liability company to satisfy an outstanding judgment.

    Filed under:
    USA, Florida, Insolvency & Restructuring, Litigation, Foley & Lardner LLP, Debtor, Interest, Limited liability company, Debt, Commercial law, Exclusive jurisdiction, Federal Trade Commission (USA), Supreme Court of the United States, Florida Supreme Court
    Authors:
    Stephen A. (Steve) Crane , Gardner F. Davis , Mary F. Kendrick , William J. McKenna
    Location:
    USA
    Firm:
    Foley & Lardner LLP
    Pension reform — the time has come, the time is now
    2010-06-25

    As Dr. Seuss once famously wrote (Marvin K. Mooney, Will You Please Go Now), “THE TIME HAS COME, THE TIME IS NOW”. Good faith efforts to bargain with Chapter 9 of the Bankruptcy Code in the foreground must begin now if we want to emerge from this financial crisis.  

    Filed under:
    USA, Employee Benefits & Pensions, Insolvency & Restructuring, Public, Saul Ewing LLP, Bankruptcy, Debtor, Trade union, Debt, Good faith, Collective bargaining agreements, Bond credit rating, Municipal bond, Balanced budget, US District Court for Eastern District of California
    Authors:
    James A. Chatz , Marc S. Zaslavsky
    Location:
    USA
    Firm:
    Saul Ewing LLP
    New decision bars debtor’s choice of counsel despite the retention of conflicts counsel
    2010-06-25

    In a recent decision in the Chapter 11 case of Project Orange Associates, LLC1, the court confronted an important issue that often arises in bankruptcy cases: whether the use of conflicts counsel is sufficient to permit court approval under section 327(a) of the Bankruptcy Code of a debtor’s choice for general bankruptcy counsel that also represents an important creditor of the debtor in unrelated matters. Here, the conflict involved the debtor's largest unsecured creditor and an essential supplier.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Lowenstein Sandler LLP, Conflict of interest, Bankruptcy, Debtor, Waiver, Interest, Unsecured creditor, Title 11 of the US Code
    Authors:
    Sharon L. Levine , Wojciech F. Jung
    Location:
    USA
    Firm:
    Lowenstein Sandler LLP
    US Bankruptcy Court limits ISDA counterparty rights upon a bankruptcy event of default
    2010-06-25

    In re Lehman Brothers Holdings, Inc., Case No. 08-13555 et seq. (JMP)(jointly administered)

    In this US decision, the Bankruptcy Court held that the "safe harbour" protections of the US Bankruptcy Code only protect a non-defaulting party's right to liquidate, terminate or accelerate a swap, to offset and to net termination values and payment amounts and to foreclose on collateral, but do not permit the withholding of performance under a swap if the swap is not terminated.

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Collateral (finance), Interest, Swap (finance), Foreclosure, Withholding tax, Concession (contract), Liquidation, Sunset provision, Default (finance), International Swaps and Derivatives Association, Lehman Brothers, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Siân C. Fellows , Nicholas Horsfield
    Location:
    USA
    Firm:
    Reed Smith LLP
    Borrower’s bid to enjoin home foreclosure is denied
    2010-06-30

    A Massachusetts trial court has denied a borrower’s request to stop a foreclosure proceeding despite the borrower’s claim that the loan was “unfair” under the Massachusetts consumer protection law, Chapter 93A of the General Laws. In its May 13 decision denying the borrower’s request for an injunction, the court examined a stated income (no documentation) loan and determined that the borrower was not likely to prevail on a claim that the loan featured a combination of four characteristics that qualify as “unfair” under Chapter 93A.

    Filed under:
    USA, Massachusetts, Banking, Insolvency & Restructuring, Litigation, Nutter McClennen & Fish LLP, Debtor, Consumer protection, Injunction, Debt, Mortgage loan, Foreclosure, Default (finance), Massachusetts Attorney General, Massachusetts Supreme Judicial Court
    Authors:
    Kenneth F. Ehrlich , Michael K. Krebs
    Location:
    USA
    Firm:
    Nutter McClennen & Fish LLP
    Inherited IRAs exempt from bankruptcy estate? Maybe; maybe not
    2010-06-29

    What is an inherited IRA? It is the IRA a non-spouse beneficiary receives upon the death of the IRA holder. Unlike a spousal beneficiary, the non-spouse beneficiary must maintain an inherited IRA in the name of the decedent for the benefit of the beneficiary. What is at stake? When the beneficiary files for bankruptcy protection, are the assets of the inherited IRA part of the bankruptcy estate and available to pay claims of creditors? Or is the inherited IRA exempt from the bankruptcy estate and free from creditor claims? Recent court cases have differing answers.

    Filed under:
    USA, Texas, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Hodgson Russ LLP, Tax exemption, Bankruptcy, Beneficiary, Retirement, Eighth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel, US District Court for Eastern District of Texas
    Authors:
    Peter K. Bradley , Anita Costello Greer , Michael J. Flanagan , Richard W. Kaiser , Arthur A. Marrapese III , Daniel R. Sharpe
    Location:
    USA
    Firm:
    Hodgson Russ LLP
    Premier American Bank assumes deposits of Peninsula Bank
    2010-06-28

    On Friday, the Florida Division of Financial Institutions closed Peninsula Bank, headquartered in Englewood, Florida, and appointed the FDIC as receiver for the bank. As receiver, the FDIC entered into a purchase and assumption agreement with Premier American Bank, headquartered in Miami, Florida, to assume all of the deposits of Peninsula Bank.

    Filed under:
    USA, Florida, Banking, Insolvency & Restructuring, Alston & Bird LLP, Share (finance), Federal Deposit Insurance Corporation (USA)
    Authors:
    Sarah Whitlock
    Location:
    USA
    Firm:
    Alston & Bird LLP

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