Risk losing your first priority lien if you provide superfluous information in the UCC financing statement

In re EDM Corporation, 2010 WL 1929772 (8th Cir BAP May 14, 2010)

CASE SNAPSHOT

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Safe harbor (law), Uniform Commercial Code (USA), Bankruptcy Appellate Panel
Authors:
Cory Falgowski
Location:
USA
Firm:
Reed Smith LLP
Sanctions awarded under the bankruptcy court’s ‘inherent authority’

In re 15375 Memorial Corporation, et al, 430 BR 142 (Bankr D Del May 17, 2010)

CASE SNAPSHOT

Filed under:
USA, Delaware, Energy & Natural Resources, Environment & Climate Change, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Debtor, Discovery, Legal burden of proof, Holding company, Involuntary dismissal, Line of credit, United States bankruptcy court, Third Circuit
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
LBIE administrators extend September 17, 2010 proof of debt submission deadline for Consensual Approach participants

Previously, on June 16, 2010, the Joint Administrators (the “Administrators”) of Lehman Brothers International (Europe) (“LBIE”) announced that they would be testing the feasibility of their so-called Consensual Approach to the resolution of LBIE’s unsecured creditor claims. They anticipated the Consensual Approach would be applicable to financial trading creditors ("FTCs") and conceptually outlined the Consensual Approach as follows:

Filed under:
USA, Banking, Insolvency & Restructuring, Schulte Roth & Zabel LLP, Unsecured debt, Dividends, Data, Option (finance), Debt, Precondition, Unsecured creditor, Federal Trade Commission (USA), Lehman Brothers
Authors:
Lawrence V. Gelber
Location:
USA
Firm:
Schulte Roth & Zabel LLP
Protecting trade creditors’ rights in bankruptcy

The Bankruptcy Code provides several protections for parties that have supplied goods or services to a debtor on credit prior to the debtor’s bankruptcy petition date.

Filed under:
USA, Insolvency & Restructuring, Womble Bond Dickinson (US) LLP, Bankruptcy, Credit (finance), Debtor, Title 11 of the US Code
Location:
USA
Firm:
Womble Bond Dickinson (US) LLP
Texas district court affirms the contractual default interest rate where the debtor is solvent

Good v RMR Investments, Inc, 428 BR 249 (ED Texas, March 31, 2010)

CASE SNAPSHOT

A secured creditor in a chapter 11 case objected to the confirmation of the reorganization plan of the debtor, arguing that the proper “cramdown” interest rate (court-modified rate) was the pre-petition contractual default rate, rather than the significantly lower cramdown rate. After the debtor appealed, the District Court affirmed, holding that utilizing the contract rate of interest was appropriate because the debtor was solvent.

Filed under:
USA, Texas, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Interest, Limited liability company, Maturity (finance), Default (finance), Secured creditor, Deed of trust (real estate), Title 11 of the US Code, United States bankruptcy court, Fifth Circuit
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP
Landlords successful in obtaining stub rent as an administrative expense under Section 503

In re Goody’s Family Clothing, Inc- F3d – 2010 WL 2671929 (3d Cir June 29, 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Bankruptcy, Debtor, Landlord, Legal burden of proof, Exclusive right, Title 11 of the US Code, Third Circuit
Authors:
Derek J. Baker
Location:
USA
Firm:
Reed Smith LLP
The Third Circuit overrules a long-standing case, changing the ability of personal injury plaintiffs to bring suit against debtors

JELD-WEN, Inc v Van Brunt (In re Grossman’s Inc), (3d Cir No 09-1563, June 2, 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Product Regulation & Liability, Reed Smith LLP, Bankruptcy, Debtor, Statutory interpretation, Due process, Liquidation, Precondition, Bankruptcy discharge, Title 11 of the US Code, United States bankruptcy court, Third Circuit
Authors:
Jennifer P. Knox
Location:
USA
Firm:
Reed Smith LLP
Delaware Bankruptcy Court finds appointment of examiner not required every time the statutory debt threshold is exceeded

In re Spansion, Inc, 426 BR 114 (Bankr Del April 1, 2010)

CASE SNAPSHOT

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Fraud, Interest, Misconduct, Discovery, Debt, Vacated judgment, Misrepresentation, Title 11 of the US Code, United States bankruptcy court
Authors:
Elizabeth A. McGovern
Location:
USA
Firm:
Reed Smith LLP
The Third Circuit expands the substantial-performance test to determine if a trademark license contract is executory

In re Exide Technologies, 607 F3d 957 (3rd Cir June 1, 2010)

CASE SNAPSHOT

Filed under:
USA, Insolvency & Restructuring, Litigation, Trademarks, Reed Smith LLP, Bankruptcy, Debtor, Breach of contract, Employment contract, Second Circuit, United States bankruptcy court, Third Circuit
Authors:
Christopher O. Rivas
Location:
USA
Firm:
Reed Smith LLP
Defense of imputation of an agent’s bad conduct to its principal clarified in Pennsylvania; independent auditor at risk for $1 billion in damages

Official Committee of Unsecured Creditors of Allegheny Health, Education and Research Foundation v PricewaterhouseCoopers, LLP(3d Cir No 07-1397, May 28, 2010)

CASE SNAPSHOT

Filed under:
USA, Pennsylvania, Insolvency & Restructuring, Litigation, Non-profit Organizations, Professional Negligence, Reed Smith LLP, Breach of contract, Fraud, Fiduciary, Audit, Negligence, Remand (court procedure), Collusion, Chief financial officer, Pennsylvania Supreme Court
Authors:
Ann E. Pille
Location:
USA
Firm:
Reed Smith LLP