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    Ninth Circuit holds that debt can be recharacterized as equity
    2013-06-05

    The US Court of Appeals for the Ninth Circuit recently resolved a split within the circuit when it held that a bankruptcy court has the power to recharacterize debt as equity.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Shareholder, Debtor, Debt, Debt restructuring, Title 11 of the US Code, Ninth Circuit, United States bankruptcy court
    Location:
    USA
    Firm:
    Katten Muchin Rosenman LLP
    American Airlines CEO Tom Horton one step closer to free lifetime travel. Oh, and $20 million
    2013-06-06

    American Airlines’ CEO, Tom Horton, moved one step closer to receiving the $20 million severance payment he’s negotiated with the bankrupt airline.  On Tuesday, the bankruptcy judge hearing American’s case allowed the payment to stay in the airline’s disclosure statement (approval of the statement is a predicate step to ultimately “reorganizing” and exiting bankruptcy).  The approval c

    Filed under:
    USA, Aviation, Employment & Labor, Insolvency & Restructuring, Zuckerman Spaeder LLP, Severance package, American Airlines
    Authors:
    William A. Schreiner, Jr.
    Location:
    USA
    Firm:
    Zuckerman Spaeder LLP
    Swaps pushout rule: Federal Reserve clarifies treatment of U.S. branches of foreign banks
    2013-06-06

    The Federal Reserve has issued an interim final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks under Section 716 of the Dodd-Frank Act ("Swaps Pushout Rule"). The interim final rule clarifies that, for purposes of the Swaps Pushout Rule, all uninsured U.S. branches and agencies of foreign banks are treated as insured depository institutions.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Davis Polk & Wardwell LLP, Swap (finance), Depository institution, Credit default swap, Grandfather clause, Federal Reserve (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
    Authors:
    Luigi L De Ghenghi , Susan C. Ervin , Randall D. Guynn , Annette L. Nazareth , Lanny A. Schwartz , Margaret E. Tahyar , Andrew S. Fei , E. Ashley Harris , Jai R. Massari , Gabriel D. Rosenberg
    Location:
    USA
    Firm:
    Davis Polk & Wardwell LLP
    SEC reporting after a bankruptcy filing - Part I
    2013-06-06

    Your good client Michael Bluth calls you from the Delaware bankruptcy court. Now that his family’s business, The Bluth Company, has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code and his late nights with DIP lenders and our bankruptcy colleagues have come to a temporary pause, Michael’s ready to turn back to his typical day-to-day job running his business.

    Filed under:
    USA, Capital Markets, Insolvency & Restructuring, Latham & Watkins LLP, Bankruptcy, Form 8-K, US Securities and Exchange Commission, United States bankruptcy court
    Authors:
    Alexander F. Cohen , Kirk A. Davenport II , Joel H. Trotter
    Location:
    USA
    Firm:
    Latham & Watkins LLP
    Financial services update, vol. 8, number 21
    2013-06-03
    In a case that should alarm secured creditors who thought they could lawfully exercise their secured creditor rights to foreclose on collateral, the Second Circuit Court of Appeals upheld sanctions against a secured creditor that did exactly that. In 2006, the State Employees Federal Credit Union ("SEFCU") made a loan to Mr. Weber, secured by Mr. Weber’s pick-up truck (the principles in this case apply equally in the corporate finance world). After Mr. Weber defaulted on the loan in 2009, SEFCU legally repossessed Mr.
    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Winston & Strawn LLP, Bankruptcy, Debtor, Collateral (finance), Secured creditor
    Authors:
    Susan Berkwitt
    Location:
    USA
    Firm:
    Winston & Strawn LLP
    9th Circuit: finding of common strategy needed for common interest doctrine
    2013-06-05

    In In re Village at Lakeridge, LLC, BAP Nos. 12-1456, 12-1474 (B.A.P. 9th Cir. Apr. 5, 2013), the Bankruptcy Appellate Panel of the Ninth Circuit clarified that, in order to apply the common interest doctrine, a trial court must make a finding that the parties expressly or implicitly agreed to participate in a joint legal strategy. In this case, secured creditor, US Bank, deposed the sole unsecured creditor, Rabkin.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Jenner & Block LLP, Interest, Secured creditor, Ninth Circuit, Bankruptcy Appellate Panel
    Authors:
    David M. Greenwald
    Location:
    USA
    Firm:
    Jenner & Block LLP
    We greet a new Aredia-Zometa dismissal with abated breath
    2013-06-05

    You have almost certainly heard the phrase, “Waiting with bated breath.” As in: we awaited the Red Wedding scene in Game of Thrones with bated breath. Or: we greeted the Drug and Device Law Son's diploma ceremony with bated breath. (The former was impressive and awful. As one friend wrote on his Facebook wall, if you had a favorite character in GoT, maybe now you don't.

    Filed under:
    USA, Pennsylvania, Insolvency & Restructuring, Litigation, Reed Smith LLP, Estoppel
    Authors:
    Stephen J. McConnell
    Location:
    USA
    Firm:
    Reed Smith LLP
    Second Circuit rules on timing of “Center of Main Interests” inquiry
    2013-05-28

    Chapter 15 of the Bankruptcy Code is designed to provide an effective mechanism to aid insolvency proceedings in foreign countries that involve a foreign debtor with assets, creditors and other parties in interest located in the foreign country as well as in United States. A foreign representative that is authorized to administer the foreign reorganization or liquidation or act as a representative of the foreign proceeding is the party who applies to the US bankruptcy court for recognition of the foreign proceeding.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Latham & Watkins LLP, Debtor, Liquidation, Title 11 of the US Code, Second Circuit, United States bankruptcy court
    Authors:
    Robert J. Malionek , Karen S. Goldstein
    Location:
    USA
    Firm:
    Latham & Watkins LLP
    Euroresource--deals and debt
    2013-05-29

    Europe, the U.S. and Canada—On 7 May 2013, the US Bankruptcy Court for the District of Delaware denied a motion by European creditors of Nortel Networks Corp. ("Nortel") to certify a direct appeal to the U.S. Court of Appeals for the Third Circuit of the bankruptcy court's 3 April 2013 ruling (Inre Nortel Networks, Inc., Case No. 09-10138 (KG), 2013 BL 92666 (Bankr. D. Del. Apr.

    Filed under:
    USA, Arbitration & ADR, Insolvency & Restructuring, Litigation, Jones Day, Debt, Liability (financial accounting), Balance sheet, Insolvency Act 1986 (UK), United States bankruptcy court
    Authors:
    Corinne Ball , Dr. Volker Kammel , Christian Staps , Matthew French
    Location:
    USA
    Firm:
    Jones Day
    Detroit emergency manager posits sale of art masterpieces as bankruptcy looms -Van Gogh(ing) once, twice, sold?
    2013-05-30

    Kevyn Orr, the emergency manager appointed by Michigan Governor Rick Snyder to try to resolve the Detroit financial crisis, has effectively replaced the Detroit mayor,

    Filed under:
    USA, Insolvency & Restructuring, Kelley Drye & Warren LLP, Bankruptcy
    Authors:
    Benjamin D. Feder
    Location:
    USA
    Firm:
    Kelley Drye & Warren LLP

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