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    Claim for post-bankruptcy pension benefits rejected following “free and clear” purchase of assets
    2013-12-20

    A group of retired employees filed a class-action law suit claiming loss of certain retirement benefits. The employees worked for SPX Corporation until 1996 when it was acquired by Dana Corporation. SPX sponsored a pension plan for these employees. In 2006, Dana filed a Chapter 11 bankruptcy and sold certain assets to Mahle gmbH. Under the asset purchase agreement, Mahle assumed certain benefit plans. The dispute arises over eligibility for supplemental retirement benefits under a plan Mahle assumed from Dana.

    Filed under:
    USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Hodgson Russ LLP, Bankruptcy, Class action, Retirement
    Authors:
    Peter K. Bradley , Anita Costello Greer , Michael J. Flanagan , Richard W. Kaiser , Arthur A. Marrapese III , Ryan M. Murphy
    Location:
    USA
    Firm:
    Hodgson Russ LLP
    Hearing set on creditors’ motion to force an appraisal committee for the Detroit Institute of Arts collection
    2013-12-20

    Following on yesterday’s release of the full report and recommendations by Christie’s with regard to the collection of the Detroit Institute of Arts, the Bankruptcy Court has set a hearing on the 

    Filed under:
    USA, Michigan, Insolvency & Restructuring, Leisure & Tourism, Litigation, Sullivan & Worcester LLP
    Authors:
    Nicholas O'Donnell
    Location:
    USA
    Firm:
    Sullivan & Worcester LLP
    Fannie Mae issues numerous servicing guide announcements
    2013-12-21

    Over the past week, Fannie Mae has announced numerous servicing policy changes through a series of Servicing Guide Announcements.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Real Estate, Orrick, Herrington & Sutcliffe LLP, Mortgage loan, Reinsurance
    Location:
    USA
    Firm:
    Orrick, Herrington & Sutcliffe LLP
    Prepayment premiums and make-whole payments
    2013-12-23

    Part Two of a Two-Part Article

    Last month, we discussed “prepayment premiums” or “make-whole payments.” The purpose of such prepayment premiums is to compensate lenders for what would otherwise be the loss of their bargained-for yields for the scheduled lives of their loans. Prepayment premiums are usually either based on a fixed fee, such as a percentage of the principal balance at the time of prepayment, or a yield maintenance formula that approximates the lenders’ damages in the event of prepayment.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Cahill Gordon & Reindel LLP, Bankruptcy, Debtor, Liquidated damages
    Authors:
    Joel H. Levitin
    Location:
    USA
    Firm:
    Cahill Gordon & Reindel LLP
    SDNY bankruptcy court upholds swap provision that modifies the method to calculate amounts owing upon the counterparty’s bankruptcy
    2013-12-23

    TheLehman Brothers bankruptcy court has determined that the contractually specified methodology for conducting the liquidation of a swap agreement is protected by the safe harbor provisions of the bankruptcy, even if the selected methodology would be more favorable to the non-defaulting counterparty than the liquidation methodology that would apply absent the bankruptcy.See Michigan State Housing Dev. Auth. v. Lehman Bros. Deriv. Prods. Inc. (In re Lehman Bros. Holdings Inc.), No. 08-13555, ---B.R.

    Filed under:
    USA, New York, Derivatives, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Bankruptcy, Swap (finance), Liquidation, International Swaps and Derivatives Association, Lehman Brothers, United States bankruptcy court, US District Court for the Southern District of New York
    Authors:
    David A. Wender , Jason H. Watson , Aimee M. Cummo , Karen Gelernt , John Spears
    Location:
    USA
    Firm:
    Alston & Bird LLP
    In re Rural Metro Corp. S’holder litig., C.A. No. 6350-vcl (Del. Ch. Dec. 17, 2013) (laster, v.C.)
    2013-12-17

    In this memorandum opinion, the Court of Chancery declined to reopen the trial record and granted a plaintiffs’ motion to exclude post-trial evidence proffered by a defendant.In reaching its conclusion, the Court found that none of the factors for reopening a trial record articulated in Pope Invs. LLC v. Benda Pharm, Inc., 2010 WL 3075296, at *1 (Del. Ch.

    Filed under:
    USA, Delaware, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Potter Anderson & Corroon LLP, Memorandum opinion, Court of Chancery
    Location:
    USA
    Firm:
    Potter Anderson & Corroon LLP
    Second Circuit adds eligibility requirement for Chapter 15 cases
    2013-12-17

    A recent decision of the Second Circuit Court of Appeals has added an additional eligibility requirement for the filing of Chapter 15 cases. In Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet), ___ F.3d ___, 2013 WL 6482499 (2d Cir.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Greenberg Traurig LLP, Bankruptcy, Debtor, Title 11 of the US Code, Second Circuit
    Location:
    USA
    Firm:
    Greenberg Traurig LLP
    Second Circuit ruling appears to limit ability of U.S. Bankruptcy Courts to assist foreign debtors
    2013-12-17

     

     

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Duane Morris LLP, Debtor, Discovery, US Code, Title 11 of the US Code, Second Circuit, United States bankruptcy court
    Authors:
    William C. Heuer , Rudolph J. Di Massa, Jr. , Rosanne Ciambrone , Ron Oliner , Gerard S. Catalanello , James J. Vincequerra
    Location:
    USA
    Firm:
    Duane Morris LLP
    The plaintiff’s bankruptcy as a bar to later lawsuits
    2013-12-17

    When does a plaintiff’s bankruptcy bar a later discrimination claim? The Ninth Circuit recently framed the issue with two cases:

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Sherman & Howard LLC, Bankruptcy, Ninth Circuit
    Location:
    USA
    Firm:
    Sherman & Howard LLC
    In re Velo Holdings, Inc.
    2013-12-17

    The Bankruptcy Court for the Southern District of New York recently held that a state’s post-confirmation investigation of a debtor’s post-confirmation conduct does not violate a plan confirmation order that enjoins actions against the debtor.  In re Velo Holdings, Inc. et al., 500 B.R. 693 (Bankr. S.D.N.Y. 2013).

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Injunction, Subpoena, Competition and Consumer Act 2010 (Australia), United States bankruptcy court
    Authors:
    Kevin M. Hembree
    Location:
    USA
    Firm:
    Alston & Bird LLP

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