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    FDIC proposes orderly liquidation rules
    2010-10-13

    Earlier today, the FDIC announced that the FDIC Board of Directors voted on Friday, October 8, 2010 to approve the issuance of a notice of proposed rulemaking (NPR) regarding the treatment of certain creditor claims under the FDIC’s new orderly liquidation authority established under Title II of the

    Filed under:
    USA, Banking, Insolvency & Restructuring, Alston & Bird LLP, Bond market, Letter of credit, Unsecured debt, Collateral (finance), Board of directors, Market liquidity, Liquidation, Holding company, Subsidiary, Subordinated debt, US Federal Government, Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
    Authors:
    Sean Doherty
    Location:
    USA
    Firm:
    Alston & Bird LLP
    Subordination is not synonymous with silence
    2010-10-19

    When we last left off, Judge Peck (SDNY) was foiling Cyrus Select Opportunities’ efforts to oppose Ion Media’s chapter 11 plan, while in the Northern District of Texas, Judge Jernigan was putting the stops on Michigan Retirement Systems’ attempt to thwart Erickson Retirement Communities’ allocation of value to PNC Bank

    Filed under:
    USA, New York, Banking, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Bracewell LLP, Standing (law), US District Court for the Southern District of New York, US District Court for Northern District of Texas
    Location:
    USA
    Firm:
    Bracewell LLP
    A perfect storm: retailers in bankruptcy in the post-BAPCPA economic downturn
    2010-10-19

    I. Introduction.

    Filed under:
    USA, Insolvency & Restructuring, Cadwalader Wickersham & Taft LLP, Bankruptcy, Retail, Debtor, Consumer protection, Commercial property, Landlord, Economy, Liquidation, Title 11 of the US Code, United States bankruptcy court
    Authors:
    Michele C. Maman
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Clean up that mess
    2010-10-18

    Last week the Supreme Court exercised its option to do nothing about a Seventh Circuit decision allowing the federal government to cram a $150 million remediation obligation onto a chapter 11 successor corporation – all because the feds chose to proceed under RCRA (the federal hazardous waste statute) rather than CERCLA (the Superfund cleanup statute). Smart tactics by the feds.

    Filed under:
    USA, Environment & Climate Change, Insolvency & Restructuring, Litigation, Bracewell LLP, Environmental remediation, Injunction, Breach of contract, Federal Reporter, Debt, US Federal Government, US Environmental Protection Agency, US Department of Justice, Title 11 of the US Code, Resource Conservation and Recovery Act 1976 (USA), Sixth Circuit, Seventh Circuit
    Authors:
    Kevin Ewing
    Location:
    USA
    Firm:
    Bracewell LLP
    Third Circuit affirms Delaware Bankruptcy Court stub rent decision
    2010-10-22

    Bankruptcy Code § 365(d)(3) requires the trustee or the debtor in possession to "timely perform all the obligations of the debtor . . .arising from and after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1)." In 2001 the Third Circuit construed this section to require the debtor to perform the lease in accordance with its terms. CenterPoint Properties v. Montgomery Ward Holding Corp. (In re Montgomery Ward Holding Corp.), 268 F.3d 205 (3d Cir. 2001).

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Real Estate, Fox Rothschild LLP, Retail, Debtor, Landlord, Federal Reporter, Debtor in possession, Title 11 of the US Code, Trustee, United States bankruptcy court, Third Circuit, First Circuit, Circuit court
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    UCC search logic: can secured creditors be too careful?
    2010-10-22

    Last year (October 23, 2009) we posted on the topic of UCC search logic in light of the bankruptcy case of In re EDM Corporation 2009 Westlaw 367773 (Bankr.D.Neb.).

    Filed under:
    USA, Nebraska, Insolvency & Restructuring, Litigation, Porter Wright Morris & Arthur LLP, Bankruptcy, Debtor, Collateral (finance), Secured creditor, Westlaw, Uniform Commercial Code (USA), Eighth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
    Location:
    USA
    Firm:
    Porter Wright Morris & Arthur LLP
    Fact inquiry necessary to determinate which sales of securities were "by means of" misstatements
    2010-10-22

    The U.S. Bankruptcy Court for the District of Massachusetts recently denied a motion for summary judgment on the issue of damages by investors in Access Cardiosystems, Inc. against one of the defendants, Randall Fincke. The investors had asserted claims against Mr.

    Filed under:
    USA, Massachusetts, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Security (finance), Patent infringement, Fraud, Misrepresentation, Legal burden of proof, Causation (law), Westlaw, Securities Act 1933 (USA), United States bankruptcy court, US District Court for District of Massachusetts
    Location:
    USA
    Firm:
    Katten Muchin Rosenman LLP
    TerreStar Networks seeks bankruptcy protection
    2010-10-22

    Straining under a debt burden in excess of $1 billion, TerreStar Networks filed a petition for Chapter 11 protection with a New York bankruptcy court on Tuesday. Known formerly as Motient Corp., TerreStar is in the midst of deploying a hybrid terrestrial/mobile satellite network that would serve rural and other hard-to-reach areas in the U.S.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Telecoms, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Bankruptcy, Shareholder, Marketing, Debt, Liability (financial accounting), Legal burden of proof, Balance sheet, US Securities and Exchange Commission, AT&T, EchoStar, United States bankruptcy court
    Authors:
    Patrick S. Campbell
    Location:
    USA
    Firm:
    Paul, Weiss, Rifkind, Wharton & Garrison LLP
    No abuse of discretion in refusing to reopen bankruptcy proceedings after four years
    2010-10-22

    REDMOND v. FIFTH THIRD BANK (October 20, 2010)

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Debt, Mortgage loan, Foreclosure, Standard of review, Remand (court procedure), Default (finance), Prejudice, United States bankruptcy court
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Jet manufacturer, Emivest Aerospace Corp., files for bankruptcy in Delaware
    2010-10-22

    On October 20, 2010, Emivest Aerospace Corporation ("Emivest") filed a petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Market liquidity, Limited liability company, Arbitration award, Limited liability partnership, Debt, Aerospace, Wells Fargo, United States bankruptcy court, US District Court for District of Delaware
    Authors:
    L. Jason Cornell
    Location:
    USA
    Firm:
    Fox Rothschild LLP

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