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    Hines Nurseries, one of the largest plant growers in the US, files for bankruptcy in Delaware
    2010-10-16

    On October 12, 2010, Consolidated Horticulture Group, LLC and Hines Nursery LLC (the "Debtors"), filed petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware. According to the Declaration filed by Debtors' President and CEO, Stephen Thigpen (the "Declaration"), Debtors are one of the largest commercial nurseries in North America, selling shrubs and container-grown plants to commercial and retail customers. Decl.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Retail, Limited liability company, Debt, Liability (financial accounting), Unsecured creditor, Secured loan, Walmart, The Home Depot, United States bankruptcy court, US District Court for District of Delaware
    Authors:
    L. Jason Cornell
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    Bankruptcy auction of the Texas Rangers: creditors finish in first place
    2010-10-15

    The Texas Rangers were sold in an August bankruptcy auction to a syndicate headed by former baseball great Nolan Ryan and attorney Chuck Greenberg. The final purchase price was $608 million—nearly $100 million more than the original offer for the team—and is a great example of how lenders can use the bankruptcy process to maximize the value of an asset.

    Filed under:
    USA, Texas, Corporate Finance/M&A, Insolvency & Restructuring, Media & Entertainment, Herrick Feinstein LLP, Conflict of interest, Bankruptcy, Fiduciary, Interest, Distressed securities, United States bankruptcy court
    Authors:
    Irwin Kishner , Matthew Pace
    Location:
    USA
    Firm:
    Herrick Feinstein LLP
    The incredible shrinking notice period: Connecticut's strict reporting stance on data breaches and security incidents
    2010-10-14

    Perhaps prompted by revelations that one or more Connecticut-based insurers failed to notify individuals or report known data security incidents or breaches until weeks, or even months, after the data had been lost or stolen, the state's Insurance Commissioner has issued stringent new reporting obligations applicable to all entities regulated by the Connecticut Department of Insurance (CDI), including, for example, insurers, agents, brokers, adjusters, health maintenance organizations, preferred provider networks, discount health plans and certain consultants and utilization review companie

    Filed under:
    USA, Connecticut, Insolvency & Restructuring, Insurance, BakerHostetler, Data security, Information privacy, ISP, Personally identifiable information, Data, Computer network, Subscription business model, Health maintenance organization, Insurance commissioner
    Authors:
    John S. Mulhollan
    Location:
    USA
    Firm:
    BakerHostetler
    District court grants bny leave to appeal bankruptcy court’s interlocutory order in Lehman, prohibiting enforcement of ipso facto clause in swap
    2010-10-13

    On September 21, 2010, the United States District Court for the Southern District of New York granted BNY Corporate Trustee Services Limited leave to appeal a decision of the Bankruptcy Court in the Lehman Brothers bankruptcy case.1 The Bankruptcy Court held that a key provision of certain transaction documents constituted an unenforceable ipso facto clause. The District Court granted leave to appeal the Bankruptcy Court decision even though it was interlocutory.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Collateral (finance), Swap (finance), Lehman Brothers cases, Lehman Brothers, Court of Appeal of England & Wales, United States bankruptcy court
    Authors:
    Mark C. Ellenberg
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    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
    Hotel loan workouts
    2010-10-19

    For many hotel owners, it is an all-too-familiar story: occupancy is down, and even though operating expenses have been cut to the bone, there is just not enough money to go around. It seems there is always another bill: franchise fees, payroll, real property taxes, debt service—the list goes on. The unfortunate result is that either because of a failure to make a payment or a breach of some other covenant, the owner finds itself looking at a default notice from its lender. When dealing with a loan default, there are four things the hotel owner needs to understand.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Leisure & Tourism, Fox Rothschild LLP, Collateral (finance), Fiduciary, Covenant (law), Debt, Mortgage loan, Foreclosure, Maturity (finance), Refinancing, Default (finance), Mortgage-backed security, Credit rating agency
    Authors:
    Michael J. Kornacki
    Location:
    USA
    Firm:
    Fox Rothschild 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

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