On Friday, May 15, 2015, Golden County Foods, Inc. (“GCF”), a business that manufactures prepared foods, filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. It was joined by two affiliates, GCF Franchisee, Inc. (“GCFF”)and GCF Holdings II, Inc. (“Holdings”). The cases are docketed as case no. 15-11062 and have been assigned to The Honorable Kevin Gross.
Rule 9019: Compromise and Arbitration
“I get knocked down / But I get up again / You’re never gonna keep me down.”
– Chumbawumba
RadioShack filed for Chapter 11 bankruptcy in Delaware bankruptcy court in February, seeking a court-supervised sale of $1.2 billion in assets. Included in the sale is a database of customer information from about 1,700 stores regarding RadioShack’s 117 million customers.
It is already relatively settled that an insider who has personally guaranteed the debt of his or her company may face preference exposure to the extent the guaranteed debt is paid down during the one-year preference period applicable to insiders. Without doubt, such payments directly benefit the guarantor, whose obligation to the primary creditor is reduced dollar for dollar.
Originally published in ABF Journal on May 20, 2015
Determining secured lender cramdown interest rates in Chapter 11 cases has been widely debated, and recent court rulings have proven to be inconclusive. Kaye Scholer Attorneys Madlyn Gleich Primoff and Holly Martin discuss the controversial issue, highlighting the ABI Commission’s recent recommendations that endorse a more favorable approach for secured lenders.
As we previously reported, on April 1, 2015, the Supreme Court heard oral argument inBullard v.
Harris v. Viegelahn, No. 14-400 (previously described in the December 15, 2014, Docket Report)
Since at least the Delaware Supreme Court’s 2007 landmark decision in N. Am. Catholic Educ. Programming Found., Inc. v. Gheewalla, 930 A.2d 92, 101 (Del.