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    Tenth Circuit BAP clarifies creditors’ rights to file plans in small business chapter 11 cases
    2014-02-04

    Section 1121(e)(1) of the Bankruptcy Code provides a 180-day exclusive period for a small business debtor to file a plan, unless this period is extended by the court.  Section 1121(e)(2) provides “the” plan and a disclosure statement (if any) shall be filed no later than 300 days after the order for relief.  Section 1121(e)(3) provides that the deadlines in 1121(e)(1) and (e)(2) may be extended only if the debtor demonstrates that it is more likely than not that the court will confirm a plan within a reasonable period of time.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Holland & Hart LLP, Debtor, Tenth Circuit
    Location:
    USA
    Firm:
    Holland & Hart LLP
    Third Circuit holds that debt collectors must generally comply with the Bankruptcy Code and the Fair Debt Collection Practices Act
    2014-01-27

    In Simon v. FIA Card Services, N.A.,[1] the U.S.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Debt, Subpoena, Debt collection, Collection agency, Fair Debt Collection Practices Act 1977 (USA), United States bankruptcy court, Third Circuit
    Authors:
    Kathryn M. Borgeson
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Third Circuit holds creditor’s claim disallowable even when held by subsequent transferee
    2014-01-29

    In In re KB Toys Inc., 736 F.3d 247 (3d Cir. 2013) (No.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Jenner & Block LLP, Third Circuit
    Authors:
    Andrew J. Olejnik , Abraham Michael Salander
    Location:
    USA
    Firm:
    Jenner & Block LLP
    Seventh Circuit allows non-recourse loan to be treated as recourse
    2014-01-29

    In In re B.R. Brookfield Commons No. 1 LLC, 735 F.3d 596 (7th Cir. 2013) (No.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Jenner & Block LLP, Debtor, Secured creditor, Seventh Circuit
    Authors:
    Andrew J. Olejnik , Abraham Michael Salander
    Location:
    USA
    Firm:
    Jenner & Block LLP
    Key decision allows massive Lyondell shareholder clawback litigation to move forward
    2014-01-29

    On January 14, 2014, Judge Robert E.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cooley LLP, Federal preemption, Shareholder, United States bankruptcy court
    Location:
    USA
    Firm:
    Cooley LLP
    Lyondell Bankruptcy Court holds that safe harbors do not prohibit creditors from asserting state law constructive fraudulent transfer claims
    2014-01-29

    On January 14, 2014, Judge Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York in Weisfelner v. Fund 1. (In re Lyondell Chemical Co.), Adv. Proc. No. 10-4609 (REG), 2014 WL 118036 (Bankr. S.D.N.Y. Jan.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Leveraged buyout, Title 11 of the US Code, Second Circuit, United States bankruptcy court
    Authors:
    Mark C. Ellenberg
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Preference actions: latest trend in calculating the “new value” defense
    2014-01-30

    The “new value” defense used by creditors in preference actions requires a creditor to determine the pre-petition amounts of unpaid “new value” it gave to a debtor after the debtor paid the creditor for goods/services provided. Debtors often argue that creditors can’t use this defense for pre-petition new value that has been repaid on a post-petition basis. Such repayments include critical vendor payments and payments for goods/services provided to the debtor within the 20 days prior to a bankruptcy filing.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Hirschler Fleischer, Debtor, Third Circuit
    Location:
    USA
    Firm:
    Hirschler Fleischer
    United States v. Sperry: a revived threat to owners, directors, managers and directors of distressed organizations
    2014-01-30

    Not-for-profit entities are not immune from the business cycles, risk of lawsuits and other threats to solvency. Managing the collapse of an organization has always required diligence, but recent IRS enforcement initiatives and a recent District Court decision have made these situations even more troublesome. During the wind-down of a failed organization, there has generally been no personal liability for managers who have chosen to pay some vendors over others (except for certain limited statutory exceptions such as trust fund taxes).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Non-profit Organizations, Benesch Friedlander Coplan & Aronoff LLP, Debt, Liquidation
    Authors:
    Caroline E. Richardson
    Location:
    USA
    Firm:
    Benesch Friedlander Coplan & Aronoff LLP
    Blurred lines: Ninth Circuit applies same First Amendment protections to bloggers as traditional media
    2014-01-24

    The Ninth Circuit last week became the first federal court of appeals to find that bloggers are entitled to the same First Amendment protections as traditional print and broadcast media when sued for defamation. Obsidian Fin. Grp. v. Cox, -- F.3d --, 2014 WL 185376 (9th Cir. Jan. 17, 2014).

    Filed under:
    USA, Insolvency & Restructuring, Internet & Social Media, Litigation, Media & Entertainment, Davis Wright Tremaine LLP, First Amendment, Defamation, Money laundering, Negligence, Federal Election Commission, Ninth Circuit
    Authors:
    James Rosenfeld , Ambika Kumar Doran , Jeremy A. Chase
    Location:
    USA
    Firm:
    Davis Wright Tremaine LLP
    Storm warnings for “safe harbor” of Bankruptcy Code section 546(e)
    2014-01-24

    Section 546(e) of the Bankruptcy Code limits the ability of a trustee or debtor-in-possession to avoid as a constructive fraudulent transfer or preferential transfer a transaction in which the challenged settlement payment was made through a stockbroker or a financial institution.1 Because of the broad protection granted by section 546(e) – the so-called “safe harbor” provision – parties structuring a leveraged buyout (“LBO”) or similar transaction often ensure that settlement funds flow through one of the listed institutions to inoculate the beneficiaries from a later challenge as a constr

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Paul Hastings LLP, Shareholder, Debtor, Leveraged buyout, Title 11 of the US Code, United States bankruptcy court
    Location:
    USA
    Firm:
    Paul Hastings LLP

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