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    Sixth Circuit rules cows can be leased
    2014-09-05

    Can you really lease a cow?

    According to the Sixth Circuit, the answer is “yes.” Dairy cattle leasing is an increasingly popular method for producers to add to their herds while conserving capital for other purposes. Leasing is particularly attractive for thinly capitalized producers who wish to spread their fixed costs across more cows.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Thompson Coburn LLP, Sixth Circuit
    Authors:
    David Warfield
    Location:
    USA
    Firm:
    Thompson Coburn LLP
    MF Global executives approved to access most of US $200 million insurance pool to help defend civil lawsuits
    2014-09-07

    Fourteen former MF Global executives, including Jon Corzine, the former chairman and chief executive officer, are entitled to access most of a US $200 million directors and officers liability insurance policy purchased by MF Global Holdings prior to the firm filing for bankruptcy in October 2011, under the decision of a US bankruptcy court in NYC last week. The executives had previously made a motion to access the insurance.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Insurance, Katten Muchin Rosenman LLP
    Authors:
    Gary DeWaal
    Location:
    USA
    Firm:
    Katten Muchin Rosenman LLP
    Publish or perish: how much publication notice is enough to provide notice to unknown creditors?
    2014-09-08

    To paraphrase Samuel Johnson, publication notice is, quite often, the debtor’s “last refuge.” Yet it is frequently a necessary feature of the notices provided in bankruptcy cases. Debtors rarely possess an accurate method for notifying the many unidentifiable potential claimants. And so enters publication notice. Pursuant to well-settled law, publication notice – if sufficient – may satisfy the requirement to provide due process to unknown creditors in a bankruptcy proceeding.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, Due process
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    No easy road – GM ignition switch litigation raises difficult bankruptcy-related questions
    2014-09-02

    General Motors LLC (“New GM”) came into being in the summer of 2009, when it acquired substantially all of the assets of General Motors Corporation (“Old GM”) in a sale undertaken pursuant to section 363 of the Bankruptcy Code.  The July 2009 Sale Order approved by U.S.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kelley Drye & Warren LLP, Bankruptcy, Injunction, General Motors
    Authors:
    Benjamin D. Feder
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP
    Business finance & restructuring Q&A: up close with Scott Baena
    2014-09-02

    For 40 years, Scott L. Baena, a senior partner of Bilzin Sumberg and chair of the firm’s Restructuring and Bankruptcy Group, has witnessed drastic changes in the practice of bankruptcy law. It has emerged, he recently told a group students, from a “small arcane undesirable practice” to a sophisticated subset of the legal profession where specialists navigate a matrix of rules designed to give debtors and creditors a level playing field to resolve their financial disputes.

    Filed under:
    USA, Insolvency & Restructuring, Bilzin Sumberg, Bankruptcy
    Location:
    USA
    Firm:
    Bilzin Sumberg
    Lead bank – between a rock and a bankruptcy trustee
    2014-09-03

    The lead-participant relationship arising from a loan participation has become a fairly contentious one over the last two years as the interests of the two have diverged. For example, loan participants that may be in a troubled condition are never terribly anxious to hear that the lead bank has obtained a current appraisal of the primary collateral. Likewise, a strong loan participant my push a weak lead bank to take more decisive action regarding collecting the loan and possibly foreclosing on the collateral.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Bryan Cave Leighton Paisner (Bryan Cave), Collateral (finance)
    Authors:
    Jerry Blanchard
    Location:
    USA
    Firm:
    Bryan Cave Leighton Paisner (Bryan Cave)
    Ninth Circuit -- bank did not violate automatic stay by placing administrative hold on chapter 7 debtors' bank accounts
    2014-09-03

    On August 26, 2014, the Ninth Circuit Court of Appeals held that Wells Fargo (the “Bank”) did not violate the automatic stay by placing a temporary administrative hold on a chapter 7 debtor’s bank accounts.  See In re Mwangi, 2014 WL 4194057 (9th Cir. 2014).  Holland & Hart represented the Bank in this significant victory.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Holland & Hart LLP, Debtor, Ninth Circuit
    Location:
    USA
    Firm:
    Holland & Hart LLP
    Bankrupty judge allows involuntary bankruptcy to move forward
    2014-09-03

    On August 29, 2014, Judge John T.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Bryan Cave Leighton Paisner (Bryan Cave), Bankruptcy, United States bankruptcy court
    Authors:
    Robert D. Klingler
    Location:
    USA
    Firm:
    Bryan Cave Leighton Paisner (Bryan Cave)
    High yield debt
    2014-09-04

    It is no surprise to anyone involved in the restructuring community that bankruptcy filings continue to decline. As reported by the American Bankruptcy Institute, corporate chapter 11 filings have decreased 34 percent since 2013.

    Filed under:
    USA, Insolvency & Restructuring, Bilzin Sumberg
    Authors:
    Jay M. Sakalo
    Location:
    USA
    Firm:
    Bilzin Sumberg
    Caveat debtor: liens preserved pursuant to section 551 subject to defects under state law
    2014-09-04

    Last month, the United States District Court for the Eastern District of North Carolina 

    Filed under:
    USA, North Carolina, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
    Authors:
    Gabriel A. Morgan
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP

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