VIRNICH v. VORWALD (December 20, 2011)
In CML V, LLC v. Bax, No. 735, 2010 (Del. Sept. 6, 2011), the Delaware Supreme Court held that a creditor of an insolvent LLC, unlike a creditor of an insolvent corporation, does not possess standing to pursue derivative claims. CML, which had lent money to a jet leasing company that later became insolvent, brought a derivative action charging that the company’s officers had engaged in mismanagement and selfinterested transactions.
There has been a high volume of bankruptcy filings over the last three years of the economic downturn and they do not show any signs of letting up. Whether it is Hostess Brands—with the future of Twinkies at risk, the prospect of iconic Kodak in the Bankruptcy Court or
IN RE: FORT WAYNE TELSAT, INC. (November 23, 2011)
Summary
COMMITTEE OF CONCERNED MIDWEST FLIGHT ATTENDANTS FOR FAIR AND EQUITABLE SENIORITY INTEGRATION v. INTERNATIONAL BROTHERHOOD OF TEAMSTERS AIRLINE DIVISION (November 30, 2011)
In a recent decision from the United States Bankruptcy Court of the Southern District of New York by Judge Martin Glenn in theIn re Borders Group, Inc. case, Jefferies was awarded a "Liquidation Fee" even though it was not involved in the actual liquidation of Borders Group, Inc. (the "Debtors" or "Borders"), and was unsuccessful in procuring a going-concern sale for the Borders business. As a result, approximately 400 stores were sold in September of 2011.
IN RE: IFC CREDIT CORP. (December 5, 2011)
On Dec. 21, 2011, the U.S. Bankruptcy Court for the District of New Jersey approved a liquidation plan for collateralized-debt obligation issuer (“CDO”) Zais Investment Grade Limited VII (“ZING VII”). The plan incorporates a settlement between senior noteholders who had initiated the bankruptcy case by filing an involuntary petition against the CDO, and junior noteholders who were appealing the Bankruptcy Court’s April 26, 2011 order granting the involuntary petition.
Judge Jed S. Rakoff this week denied the request of Irving Picard, the trustee of Bernard L.