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    Free-and-clear asset sales price must exceed outstanding debt to satisfy section 363(f)(3)
    2012-03-15

    In re Nance Properties, Inc., Case No. 11-06197- 8-JRL (Bankr. E.D.N.C. Nov. 8, 2011)

    CASE SNAPSHOT

    Filed under:
    USA, North Carolina, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Debt, Secured creditor
    Authors:
    Joseph D. Filloy
    Location:
    USA
    Firm:
    Reed Smith LLP
    Corporate synergy among related debtors key to finding conferral of economic benefit in fraudulent transfer action
    2012-03-15

    Spicer v. Konjoyan (In re Renaissance Hospital, et al.), Adv. No. 10-04190-DML (Bankr. N.D. Texas, Nov. 1, 2011)

    CASE SNAPSHOT

    Filed under:
    USA, Texas, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Fraud
    Authors:
    Joseph D. Filloy
    Location:
    USA
    Firm:
    Reed Smith LLP
    The 7th Circuit considers the indubitable equivalent standard—again!
    2012-03-15

    On June 28, 2011, the Seventh Circuit Court of Appeals decided In re River Road Hotel Partners, LLC v. Amalgamated Bank, 651 F. 3d 642 (7th Cir. 2011). The Court addressed Section 1129 (b)(2)(A) of the United States Bankruptcy Code in connection with a Plan of Reorganization to sell substantially all of the Debtor's assets. The Court held that the indubitable equivalent prong, (i.e., the "cram down" provisions of section 1129(b)(2)(A)(iii)) could not be used to preclude a secured creditor from credit bidding its claim under sections 363(k) and 1129(b)(2)(A)(ii) of the Code.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reinhart Boerner Van Deuren SC, Debtor, Collateral (finance), Foreclosure, Fifth Circuit, Third Circuit, Seventh Circuit
    Authors:
    Peter C. Blain
    Location:
    USA
    Firm:
    Reinhart Boerner Van Deuren SC
    Estate of Badii ex rel. Badii v. Metropolitan Hospice, Inc., C.A. No. 6192-VCP (Del. Ch. Mar. 12, 2012) (Parsons, V.C.)
    2012-03-12

    In this memorandum opinion, the Court of Chancery appointed a receiver for an insolvent corporation deadlocked over how to discharge a tax lien.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Tax, Potter Anderson & Corroon LLP, Shareholder, Interest, Tax lien
    Location:
    USA
    Firm:
    Potter Anderson & Corroon LLP
    If you aren’t successful, can you still get the success fee?
    2012-03-15

    Yes, on the facts in the Chapter 11 proceedings involving Borders, the insolvent bookseller.

    Jefferies & Company, an investment bank, was retained by Borders to pursue reorganisation strategies, including a possible sale of the company’s assets as a going concern. The bank made considerable efforts in flogging the assets, which resulted in an offer from an interested party, but an actual sale of assets did not happen. Jefferies nevertheless claimed the liquidation fee under its agreement with Borders. The company’s creditors opposed this: no sale, no success fee.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP, US District Court for the Southern District of New York
    Location:
    USA
    Firm:
    Borden Ladner Gervais LLP
    Sixth Circuit rules that United States lacks standing in case against bankruptcy trustees
    2012-03-13

    The Sixth Circuit in United States v. Carroll, Case No.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Tax, Squire Patton Boggs, Bankruptcy, Sixth Circuit
    Authors:
    Carlee H. Toth
    Location:
    USA
    Firm:
    Squire Patton Boggs
    New bankruptcy proof of claim rules take effect
    2012-03-14

    As seen in the Spring 2012 issue of West Virginia Banker.

    In the wake of the national attention directed towards residential mortgages in the last few years, certain revisions were made to the Federal Rules of Bankruptcy Procedure to address perceived deficiencies in bankruptcy proofs of claim. The rule changes were first proposed in 2009 by the Judicial Conference of the United States and became effective December 1, 2011.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Dinsmore & Shohl LLP, Bankruptcy, Debtor, Mortgage loan, Power of attorney
    Authors:
    Michael R. Proctor
    Location:
    USA
    Firm:
    Dinsmore & Shohl LLP
    Ninth Circuit finds California arbitration law preempted
    2012-03-14

    Relying on the U.S. Supreme Court’s decision inAT&T Mobility LLC v. Concepcion, the Ninth Circuit Court of Appeals recently held that California’s rule against compulsory arbitration of claims for public injunctive relief was preempted by the Federal Arbitration Act (“FAA”). The Court also underscored the key points of an enforceable arbitration clause. Kilgore v. KeyBank (March 7, 2012).

    Case Background

    Filed under:
    USA, California, Arbitration & ADR, Banking, Insolvency & Restructuring, Litigation, Seyfarth Shaw LLP, Federal preemption, Injunction, Arbitration clause, Student loan, Federal Arbitration Act 1926 (USA), Ninth Circuit
    Location:
    USA
    Firm:
    Seyfarth Shaw LLP
    Tenth Circuit holds automatic stay applies to debtor’s appeal of pre-petition action against it, joining most other circuits
    2012-03-15

    TW Telecom Holdings Inc. v. Carolina Internet Ltd., Case No. 11-1068 (10th Cir. Nov. 15, 2011)

    CASE SNAPSHOT

    The Tenth Circuit Court of Appeals reversed its longstanding position, and held that section 362(a) of the Bankruptcy Code does automatically stay the debtor’s appeal of an action commenced against the debtor prior to the bankruptcy filing, regardless of whether the debtor is the appellant or the appellee. This decision aligns the Tenth Circuit with at least nine other circuits.  

    FACTUAL BACKGROUND

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Tenth Circuit
    Location:
    USA
    Firm:
    Reed Smith LLP
    Creation of artificially impaired class to approve cram-down plan is not per se impermissible
    2012-03-15

    In re Village at Camp Bowie I, L.P., 454 B.R. 702 (Bankr. N.D. Texas, 2011)

    CASE SNAPSHOT

    Filed under:
    USA, Texas, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Foreclosure, Good faith, Default (finance), Secured creditor, Title 11 of the US Code
    Authors:
    Ann E. Pille
    Location:
    USA
    Firm:
    Reed Smith LLP

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