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

Lehman reaches settlement with perpetual in Dante case

2010-11-30

On November 17th, Lehman Brothers Special Financing Inc. ("LBSF") and its official unsecured creditors' committee filed a joint motion to stay BNY Corporate Trustee Services Limited's ("BNY") appeal for 90 days in the "Dante" matter, pending final settlement of the dispute between LBSF and Perpetual Trustee Company Limited ("Perpetual").

Filed under:

USA, Insolvency & Restructuring, Litigation, Orrick, Herrington & Sutcliffe LLP, Bankruptcy, Unsecured debt, Collateral (finance), Swap (finance), Lehman Brothers, Trustee, United States bankruptcy court

Authors:

Nikiforos Mathews , Jim Croke , William S. Haft , Peter C. Manbeck , Al B. Sawyers

Location:

USA

Firm:

Orrick, Herrington & Sutcliffe LLP

Post-confirmation cramdown interest rate: ‘market formula’ applies to oversecured

2010-12-01

In re SJT Ventures, LLC, 2010 WL 3342206 (Bankr. N.D. Texas 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Interest, Limited liability company, Default (finance), Secured creditor, Commercial mortgage, Secured loan, Title 11 of the US Code, United States bankruptcy court

Authors:

Ann E. Pille

Location:

USA

Firm:

Reed Smith LLP

Undersecured mortgage lenders may include fees & costs in arrearage cure amount of chapter 13 debtor under section 1322(e)

2010-12-01

Deutsche Bank National Trust Co. v. Tucker, No. 09-5867 (6th Cir. 2010)

CASE SNAPSHOT

In resolving a conflict within the Sixth Circuit, the Court of Appeals has held that chapter 13 debtors who propose in their plan of reorganization to cure the arrearage on their mortgage loan are required to pay all fees and costs required by the mortgage and non-bankruptcy law, even if the mortgage lender is undersecured. Put another way, mortgage lenders may include such fees and costs in their proofs of claim.

FACTUAL BACKGROUND

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Debtor, Statutory interpretation, Mortgage loan, Remand (court procedure), US Congress, Deutsche Bank, United States bankruptcy court, Sixth Circuit

Authors:

Barbara K. Hager

Location:

USA

Firm:

Reed Smith LLP

In a case of first impression, the circuit court determines that a trustee of a securitized investment pool is a ‘transferee’ in a preference action

2010-12-01

Paloian v LaSalle Bank, NA, 619 F.3d 688 (7th Cir. 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Medicaid, Legal personality, Debtor, Accounts receivable, Limited liability company, Remand (court procedure), Tax return (USA), Investment funds, Cashflow, Discounted cash flow, Trustee, United States bankruptcy court, Seventh Circuit

Authors:

Ann E. Pille

Location:

USA

Firm:

Reed Smith LLP

The Donald Trumps Icahn - intercreditor agreement restrictions on junior lenders not controlling in consideration of approval of nonconsensual reorganization plan

2010-12-01

In the Matter of TCI 2 Holdings, LLC, 428 B.R. 117 (Bankr. D.N.J. 2010)

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Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Unsecured debt, Interest, Consideration, Debt, Casino, Leverage (finance), United States bankruptcy court

Authors:

Brian M. Schenker

Location:

USA

Firm:

Reed Smith LLP

Funds ‘earmarked’ for bondholders not property of the estate and not subject to avoidance

2010-12-01

Cooper v Centar Investments LTD, et al. (In re Trigem America Corporation), 431 B.R. 855 (C.D. Cal. 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bond (finance), Debtor, Fraud, Accounts receivable, Interest, Swap (finance), Stock exchange, Convertible bonds, Ninth Circuit

Authors:

Christopher O. Rivas

Location:

USA

Firm:

Reed Smith LLP

Creditors of insolvent subsidiaries may bring derivative actions against parent company’s officers and directors for breach of fiduciary duties

2010-12-01

Official Committee of Unsecured Creditors of TOUSA, Inc. v. Technical Olympic, S.A. (In re TOUSA, Inc.), 2010 WL 3835829 (Bankr. S.D. Fla. 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Shareholder, Unsecured debt, Security (finance), Breach of contract, Fiduciary, Board of directors, Debt, Standing (law), Involuntary dismissal, Stakeholder (corporate), Business judgement rule, Subsidiary, Parent company, United States bankruptcy court

Authors:

Brian M. Schenker

Location:

USA

Firm:

Reed Smith LLP

Bankruptcy court (mostly) dismisses complaint against pre-petition lenders based on alleged inequitable conduct

2010-12-01

Official Committee of Unsecured Creditors v Credit Suisse (In re Champion Enterprises, Inc.), 2010 WL 3522132 (Bankr. D. Del. 2010)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Contractual term, Bankruptcy, Credit (finance), Unsecured debt, Breach of contract, Debt, Estoppel, Unjust enrichment, Default (finance), Line of credit, Credit Suisse, Title 11 of the US Code, United States bankruptcy court

Authors:

Location:

Firm:

2010-12-01

We are seeing more and more challenges by borrowers to swaps. No big surprise since, with falling interest rates over the past few years, the borrowers are on the wrong end of the transactions. Although swaps are considered independent of the loans, they are often secured by the same collateral and are usually crossdefaulted with the loans, so the obligations that arise from early termination (which can be significant) become part of the collection process and are being fought vigorously by borrowers.

Filed under: