Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

In this edition of the Landlord’s Corner, we review various cases that address the (i) rights of landlords to recover their property post-rejection, (ii) whether payments pursuant to a termination of lease agreement constitute preferential transfers and (iii) whether a lease could be retroactively rejected in the absence of a formal motion to reject.

Filed under:

USA, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Bankruptcy, Debtor, Landlord, Westlaw, Title 11 of the US Code, Trustee, United States bankruptcy court, First Circuit

Authors:

Derek J. Baker

Location:

USA

Firm:

Reed Smith LLP

Court breaks from majority rule, granting retirees post-petition rights greater than pre-petition rights

2010-09-13

IUE-CWA v Visteon Corporation, 2010 WL 2735715 (3rd Cir July 13, 2010)

CASE SNAPSHOT

Filed under:

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Life insurance, Good faith, Collective bargaining agreements, Majority opinion, US Congress, Communications Workers of America, Trustee, Second Circuit, United States bankruptcy court, Third Circuit

Authors:

Christopher O. Rivas

Location:

USA

Firm:

Reed Smith LLP

Broader economic woes may have played a part in the court’s decision to dismiss allegations of lender overreaching

2010-09-13

American Consolidated Transportation Companies, Inc v RBS Citizens NA (In re American Consolidated Transportation Companies, Inc), Adversary No 10-00154, Bankruptcy No 09-26062 (Bankr ND Ill July 13, 2010)

CASE SNAPSHOT

Filed under:

USA, Illinois, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Letter of credit, Credit (finance), Debtor, Interest, Swap (finance), Liquidation, Good faith, Cashflow, Default (finance), Secured loan, The Royal Bank of Scotland, United States bankruptcy court

Authors:

Brian M. Schenker

Location:

USA

Firm:

Reed Smith LLP

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

2010-09-13

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’

2010-09-13

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

2010-09-17

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

2010-09-14

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

2010-09-13

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: