The Ninth Circuit Court of Appeals recently rendered its decision in the Mwangi case, dealing whether a debtor can assert a claim against his bank for placing an administrative freeze on his bank account pending a determination of the debtor’s exemption claim as to the funds in the account.
A D&O liability policy protects key individuals in a corporate structure. These individuals are likely targets for shareholder frustration if an entity is underperforming or suffering from other troubles. In addition, they may be exposed to personal scrutiny from regulators if the corporation is investigated for any wrongdoing. As previously discussed in this space, an insurance policy can provide more reliable protection for t
A prominent New York bankruptcy court is the latest in a series of courts to deny lenders the full benefit of their bargains when borrowers attempt to restructure debt through a chapter 11 reorganization. Continuing a trend that includes a 2013 decision from the Second Circuit in the American Airlines bankruptcy, the Fifth Circuit's 2014 decision in the case of Denver Merchandise Mart, and the New York federal district court's 2010 affirmance in the Calpine bankruptcy case, the bankruptcy court for the Southern District of New York has ruled, in In re MPM Silicones, LLC (Momen
The last major revision to U.S. business reorganization laws occurred in 1978.
Since then, companies’ capital structures have become more complex and rely
more heavily on leverage, including secured debt in particular; their asset values
are driven less by hard assets and more by services, contracts, intellectual property and
other intangible assets; and their business structures and models increasingly are multinational.
Moreover, there has been a growing perception that troubled companies are
This article was originally published by LatinFinance on November 25, 2014.
A rise of cross-border insolvencies in recent years has generated substantial litigation. In some cases, US bondholders, perceiving their treatment under a foreign reorganization plan to be inequitable, have sought a second chance by opposing the plan in the US on the grounds that its enforcement would be contrary to domestic public policy.
Under section 365(f)(1), a debtor is permitted to assume and assign leases and executory contracts notwithstanding contractual limitations or “applicable law” that restricts such assignment. However, that broad general authorization begins with the limiting language, “except as provided in subsection (b) and (c) of this section….”
The American Bankruptcy Institute Commission to Study the Reform of Chapter 11 (the “Commission”) issued its 400-page Final Report and Recommendations (the “Report”) on Dec. 8, 2014. The Report recommends a variety of changes to Chapter 11 of the Bankruptcy Code.
When a chapter 11 plan of reorganization contains no provision that allows for the full debt to be collected in the event of a debtor’s nonpayment, the creditor’s obligation cannot be accelerated under Florida law absent an acceleration provision. The recent case of Baggett Bros. Farm, Inc. v. Altha Farmers Co-op., Inc., No. 1D:13-4200, 39 Fla. L. Weekly D2127, 2014 WL 5033350 (Fla. 1st DCA Oct. 9, 2014), reh’g denied (Nov. 7, 2014) highlights this point.
Waldschmidt v. Singletary Construction LLC (In re Tackett), 516 B.R. 498 (Bankr. M.D. Tenn. 2014) –
A bankruptcy trustee sought turnover of profits from the sale of homes constructed by a contractor. The trustee contended that there were contracts between the debtor and the contractor pursuant to which the debtor agreed to reimburse the contractor for its costs plus pay a $15,000 contractor’s fee for each home.
A “UCC-3 Termination Statement” is commonly used in secured transactions by a secured party to put the world on notice that the perfected security interest referenced in the UCC-3 filing is terminated. On October 17, 2014, the Supreme Court of the State of Delaware, in Official Comm. of Unsecured Creditors of Motors Liquidation Co. v. JPMorgan Chase Bank, N.A.