Generally, the priority scheme in section 507 of the Bankruptcy Code dictates the order in which a creditor is paid.
On August 26, 2014, Judge Drain concluded the confirmation hearing in Momentive Performance Materials and issued several bench rulings on cramdown interest rates, the availability of a make-whole premium, third party releases, and the extent of the subordination of senior subordinated noteholders.
“If ye continue in the faith grounded and settled, and be not moved away from the hope of [EBIA v. Arkison]. . .”
– Colossians 1:23, King James version (as revised)
It’s a beautiful day for the beach. Even though some of us may be at the beach today (and if you are at the beach, why didn’t you invite us?), bankruptcy, like time, waits for no one. Wherever we happen to be, ‘tis the season for a little something light – or at least lighthearted. In the spirit of summer Fridays, we wanted to take the opportunity to bring you some of the colorful quotes that we’ve come across in bankruptcy decisions over the past few months. And for those of you who crave more: worry not – we’ll keep combing our records in efforts to bring you furth
Earlier this week, the Third Circuit affirmed a federal bankruptcy court’s dismissal of a mesothelioma claim against a bankrupt oil company that arose as an adversary proceeding fifteen years after the bankruptcy plan was confirmed and discharged all outstanding claims. The Circuit held that because the parties conceded the claim arose at the time of the victim’s asbestos exposure, which pre-dated the defendant’s bankruptcy, a
On May 4, Judge Vincent Bricetti of the United States District Court for the Southern District of New York issued a ruling in the Momentive Performance Materials cases affirming the bankruptcy court’s confirmation rulings. Key themes raised in this case of interest to distressed investors and addressed in Judge Bricetti’s ruling include
Can a waiver of rights ever be beneficial to the person granting the waiver? Yes. In In re Adamson Apparel, the Court of Appeals for the Ninth Circuit held, in a 2-1
Is a rent-stabilized lease in New York a “local public assistance benefit” that is exempt from property of a debtor’s bankruptcy estate, or is it merely “a quirk of the regulatory scheme in the New York housing market[?]” That was the question recently decided by the Second Circuit in In re Monteverde.
Readers, welcome to the latest installment of our ongoing coverage of the Final Report and Recommendations of the ABI Commission to Study the Reform of Chapt