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    Health care sector creates challenges for distressed providers, opportunities for others
    2015-01-27

    In 2014, the health care industry continued to see a high level of M&A activity, with announced transactions approaching $440 billion globally by the end of November. In the United States, consolidation continues to occur in the hospital and health care services subsector, often involving distressed health care providers. For many distressed providers — often small and midsized hospitals and hospital systems — acquisition by a financially strong counterparty is the only way to survive.

    Filed under:
    USA, Corporate Finance/M&A, Healthcare & Life Sciences, Insolvency & Restructuring, Skadden Arps Slate Meagher & Flom LLP, Debtor, Affordable Care Act 2010 (USA)
    Authors:
    Felicia Gerber Perlman
    Location:
    USA
    Firm:
    Skadden Arps Slate Meagher & Flom LLP
    Delaware Court of Chancery decision clarifies fiduciary issues in insolvent company
    2015-01-27

    The Court of Chancery of Delaware recently issued a noteworthy decision clarifying fiduciary duties and confirming business judgment rule protection for board-level business strategy decisions by directors of insolvent corporations.1 Quadrant Structured Products Company v. Vertin, 102 A.3d 155 (Del. Ch. 2014).

    Filed under:
    USA, Delaware, Company & Commercial, Insolvency & Restructuring, Litigation, Skadden Arps Slate Meagher & Flom LLP, Fiduciary, Business judgement rule, Court of Chancery, Delaware Court of Chancery
    Authors:
    John K. Lyons , Mark S. Chehi
    Location:
    USA
    Firm:
    Skadden Arps Slate Meagher & Flom LLP
    Wellness International oral argument: Supreme Court justices grapple with implications of narrowing bankruptcy court powers
    2015-01-26

    There were nearly a million bankruptcy cases filed by individuals and businesses in 2014.  It is safe to say that only the tiniest fraction of such debtors have any familiarity with the Supreme Court’s decision in Stern v.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, United States bankruptcy court
    Authors:
    Benjamin D. Feder
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Lender beware: mistakenly filed UCC-3 statement renders $1.5 billion loan unsecured
    2015-01-26

    On October 20, 2014, we issued a Legal News Alert commenting on a decision of the Delaware Supreme Court, on certification from the Second Circuit, regarding the effect of a mistaken UCC-3 termination statement.The Delaware Supreme Court held that an indisputably mistaken UCC-3 termination statement that purported to terminate a lender’s security interest in a $1.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Foley & Lardner LLP, Unsecured debt
    Authors:
    Charles Tabb , Mark J. Wolfson
    Location:
    USA
    Firm:
    Foley & Lardner LLP
    Caesars’ bankruptcy plan: already under attack?
    2015-01-26

    Events are happening quickly these days with Caesars Entertainment.  On January 13, holders of second lien notes issued by Caesars Entertainment Operating Company (“CEOC”) filed an involuntary chapter 11 petition against CEOC in the U.S. Bankruptcy Court for the District of Delaware.  Two days later, CEOC itself filed a voluntary chapter 11 petition in the U.S. Bankruptcy Court for the Northern District of Illinois, setting up a venue fight over the bankruptcy case.  And later that same day, the U.S.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Squire Patton Boggs, United States bankruptcy court
    Authors:
    Mark A. Salzberg
    Location:
    USA
    Firm:
    Squire Patton Boggs
    The fall in crude oil prices: headline issues to watch
    2015-01-26

    Oil price movement through 2014 and into 2015 is a consequence of market fundamentals. Europe’s continued economic woes, paired with the slowdown in China’s economy, have led to a fall in demand for oil.

    At the same time, the growing U.S. shale-oil boom (over which OPEC has no control) and the pick-up in drilling in Libya have led to an excess of supply. However, in the past few months the issue has switched from how quickly oil prices have fallen, to how much further they have to fall.

    Filed under:
    USA, Energy & Natural Resources, Insolvency & Restructuring, Reed Smith LLP, Debtor, Balance sheet, Commodity market
    Authors:
    Andrew Meads , Charlotte Møller , Nicholas Rock , Prajakt Samant
    Location:
    USA
    Firm:
    Reed Smith LLP
    Ohio adopts new receivership statute
    2015-01-22

    Effective March 23, 2015, the Ohio Revised Code will contain robust provisions for the court appointment of a receiver, which will expand the statutory grounds for such appointments and expressly authorize enumerated powers for receivers designed to facilitate the receiver’s ability to liquidate assets. In many respects the revised statute codifies a number of existing practices.

    Filed under:
    USA, Ohio, Insolvency & Restructuring, Thompson Hine LLP
    Authors:
    Alan R. Lepene , Linda A. Striefsky , Jon S. Hawkins
    Location:
    USA
    Firm:
    Thompson Hine LLP
    A new tool for holdout bondholders: the Trust Indenture Act
    2015-01-22

    Latham & Watkins operates worldwide as a limited liability partnership organized under the laws of the State of Delaware (USA) with affiliated limited liability partnerships conducting the practice in the United
    Kingdom, France, Italy and Singapore and as affiliated partnerships conducting the practice in Hong Kong and Japan. The Law Office of Salman M. Al-Sudairi is Latham & Watkins associated office in the

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Latham & Watkins LLP, Bond (finance), Limited liability partnership
    Location:
    USA
    Firm:
    Latham & Watkins LLP
    Fourth quarter decisions in the Eighth Circuit Court of Appeals and Bankruptcy Appellate Panel
    2015-01-22

    The United States Court of Appeals for the Eighth Circuit and the United States Bankruptcy Appellate Panel for the Eighth Circuit (the “BAP”) issued a number of published and unpublished decisions in the fourth quarter of 2014 that impact both consumer and business bankruptcy practice throughout the circuit.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Stinson LLP, Debtor, Federal Reporter, Eighth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
    Authors:
    Patrick R. Turner
    Location:
    USA
    Firm:
    Stinson LLP
    Effect on community associations when owners file bankruptcy
    2015-01-22

    Association assessment collection is every day business for Florida community associations. Often times, the unit owner will file bankruptcy to avoid this legal obligations. The law governing condominium and homeowners association assessments with regard to bankruptcy actions is found at 11 USC § 523 (a)(16). This law which generally states that assessments are not dischargeable.

    Filed under:
    USA, Florida, Insolvency & Restructuring, Jimerson & Cobb P.A., Bankruptcy, Debtor
    Authors:
    Christopher M. Cobb , Brittany N. Snell
    Location:
    USA
    Firm:
    Jimerson & Cobb P.A.

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