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    Court rules that Detroit is eligible for Chapter 9 and that pensions may be impaired in Chapter 9
    2013-12-06

    On December 5, 2013, the U.S. Bankruptcy Court for the Eastern District of Michigan released its 143 page decision upholding the City of Detroit’s eligibility to be a debtor under chapter 9 of the United States Bankruptcy Code.  In re City of Detroit, Michigan, Case No. 13-53846 (Bankr. E.D. Mich. Dec.

    Filed under:
    USA, Michigan, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bankruptcy, Constitutionality, Title 11 of the US Code, US District Court for Eastern District of Michigan
    Authors:
    Ingrid Bagby , Thomas Curtin , Mark C. Ellenberg , Ivan Loncar , Lary Stromfeld
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Third Circuit says technical procedural slip-up in bankruptcy proceeding is grounds for FDCPA claim
    2013-12-09

    A recent Third Circuit reversal paves the way for Fair Debt Collection Practices Act (FDCPA) lawsuits based on minor procedural mishaps in bankruptcy court. This contradicts the law in the Second and Ninth Circuits and in many district and bankruptcy courts that previously have found that participation in bankruptcy proceedings is not an attempt to collect a debt and thus not grounds for an FDCPA claim.   

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Dykema Gossett PLLC, Bankruptcy, Debtor, Debt, Subpoena, Fair Debt Collection Practices Act 1977 (USA), United States bankruptcy court, Third Circuit
    Authors:
    Amy R. Jonker
    Location:
    USA
    Firm:
    Dykema Gossett PLLC
    Work continues on model real estate receivership statute
    2013-12-10

    Based on progress to date, a Model Act on Appointment and Powers of Real Estate Receivers may be making its way to a state legislature near you within the next couple of years.  The Committee appointed by and representing the National Conference of Commissioners on Uniform State Laws to prepare the model act met again in late September, 2013, to review the latest working draft of the

    Filed under:
    USA, Insolvency & Restructuring, Real Estate, Dykema Gossett PLLC
    Authors:
    Brian J. Page
    Location:
    USA
    Firm:
    Dykema Gossett PLLC
    When worlds collide, the sequel: Fourth Circuit rules on Section 365(n)'s IP licensee protections in Chapter 15 cross-border bankruptcy
    2013-12-10

    My how time flies in protracted bankruptcy litigation. More than four years ago, as I reported back at the time, the Bankruptcy Court in the Chapter 15 cross-border bankruptcy case of Qimonda AG issued its first decision on the application of Section 365(n) in that case. After an initial appeal, a four-day trial on remand, and another appeal, last week the U.S.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cooley LLP, Bankruptcy, United States bankruptcy court, Fourth Circuit
    Authors:
    Robert Eisenbach
    Location:
    USA
    Firm:
    Cooley LLP
    Bondholders bound by ‘no action’ clause in unitranche financing documents
    2013-12-11

    In re American Roads LLC, et al., 496 B.R. 727 (S.D.N.Y. 2013

    CASE SUMMARY

    An ad hoc committee of bondholders who executed an agreement with a monoline insurer securing claims under an insured unitranche containing a “no action” clause, bargained away their right to appear in the debtor’s bankruptcy case and, therefore, lacked standing to object to the debtor’s chapter 11 plan.

    FACTUAL  BACKGROUND

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bond (finance), Bankruptcy, Debtor
    Authors:
    Lauren S. Zabel
    Location:
    USA
    Firm:
    Reed Smith LLP
    Lender’s use of debtor’s valuation judicially estops lender from making value objection
    2013-12-11

    In re Investors Lending Group, LLC, 489 B.R. 307 (Bankr. S.D. Ga. 2013)

    CASE  SNAPSHOT

    The secured lender was judicially estopped from objecting to the valuation of parcels of land that the debtor proposed to surrender to the secured creditor through its plan of reorganization because the debtor used the valuations provided by the secured lender’s appraiser.

    FACTUAL  BACKGROUND

    Filed under:
    USA, Georgia, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Foreclosure, Fair market value, Secured creditor
    Authors:
    Jared S. Roach
    Location:
    USA
    Firm:
    Reed Smith LLP
    Amount of credit bid must be included in calculation of quarterly fee
    2013-12-11

    In re WM Six Forks, LLC, Case No. 12-05854-8-ATS, 2013 WL 5354748 (Bankr. E.D.N.C., Sept. 23, 2013)

    CASE  SNAPSHOT

    Filed under:
    USA, North Carolina, Insolvency & Restructuring, Litigation, Reed Smith LLP, Credit (finance), Debtor, Secured creditor
    Authors:
    Alison Wickizer Toepp
    Location:
    USA
    Firm:
    Reed Smith LLP
    Delaware Supreme Court holds receiver is required to defend lawsuits after a corporation is wound-up; finds no generally applicable statute of limitation for claims against a dissolved corporation
    2013-12-11

    In Anderson v Krafft-Murphy Co. Inc., 2013 Del. LEXIS 597 (Del. Nov. 26, 2013), the Delaware Supreme Court held that Sections 278 and 279 of the Delaware General Corporation Law, 8 Del. C.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Insurance, Litigation, Sheppard Mullin Richter & Hampton LLP, Legal personality, Shareholder, Statute of limitations, Delaware General Corporation Law, Court of Chancery, Delaware Court of Chancery, Delaware Supreme Court
    Authors:
    John P. Stigi III
    Location:
    USA
    Firm:
    Sheppard Mullin Richter & Hampton LLP
    Fourth Circuit addresses protections for us IP licenses in case under chapter 15 of the Bankruptcy Code
    2013-12-11

    In a case of significant importance to licensees of US intellectual property, the US Court of Appeals for the Fourth Circuit held in Jaffé v. Samsung Electronics Co. (In re Qimonda), Case No. 12-1802, 2003 WL 26478864 (4th Cir. Dec. 3, 2013) (“Jaffé”), that a bankruptcy court did not err by requiring that the protections of section 365(n) of the Bankruptcy Code apply with respect to a foreign debtor’s US intellectual property (“IP”) as a condition of granting the debtor’s foreign representative relief under chapter 15 of the Bankruptcy Code.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Mayer Brown, Debtor, Title 11 of the US Code, United States bankruptcy court, Fourth Circuit
    Location:
    USA
    Firm:
    Mayer Brown
    Detroit Institute of Arts responds swiftly to Detroit bankruptcy eligibility ruling
    2013-12-03

    The Detroit Institute of Arts was ready: the museum released a statement immediately after the Bankruptcy Court’s ruling today that Detroit is eligible for Chapter 9 Bankr

    Filed under:
    USA, Michigan, Insolvency & Restructuring, Media & Entertainment, Sullivan & Worcester LLP
    Authors:
    Nicholas O'Donnell
    Location:
    USA
    Firm:
    Sullivan & Worcester LLP

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