Under section 365(d)(4) of the Bankruptcy Code, an unexpired lease of nonresidential real property is automatically deemed rejected if a debtor-lessee does not assume such lease within 120 days of its bankruptcy filing, or within 210 days with court permission.
“I get knocked down / But I get up again / You’re never gonna keep me down.”
– Chumbawumba
“How was I supposed to know that something wasn’t right here … Show me how you want it to be. Tell me baby ‘cause I need to know now…” – Britney Spears
“I can [resolve] that” – Sam the Onion Man, Holes (as modified)
It may only be Galentine’s Day as we post this, but given that V-Day is imminent, The Bachelor is in full-swing, and Fifty Shades of Gray just came out on the big screen, we decided to find some reasonable nexus between bankruptcy, romance, and love. In this year’s edition, we learn that all bets are off when former lovers end up in court.
The timing of a bankruptcy petition filing is often a carefully calculated decision that a debtor makes to obtain certain protections of the Bankruptcy Code, most notably, the automatic stay, in advance of a looming event. In many cases, a debtor may be close to tripping a covenant, missing a debt payment, or a creditor may be attempting to foreclose on the debtor’s assets. The debtor must be cognizant of the timing of these events as the protections of the Bankruptcy Code only apply after the petition has been filed.
As a company turns in the widening gyre of financial distress, its directors and officers are often confronted with situations that require them to make difficult decisions. Should things fall apart, those decisions may give rise to claims that directors or officers breached their fiduciary duties to the company. A
On Monday 17 November 2014, Weil held its inaugural European Distressed Investor Conference at The Dorchester in London. A summary of the key discussion points follows.
Panel A:
Introduction