Court Looks to the Knowledge of the Transferees in Madoff

Until recently, In re Atari, Inc. was a closed case, but, in a recent decision, the bankruptcy court for the Southern District of New York found that “other cause” existed to reopen the bankruptcy cases. 

Background

Section 105(a) of the Bankruptcy Code acts as the Bankruptcy Code’s equitable backstop, empowering bankruptcy courts to “issue any order, process, or judgment that is necessary or appropriate to carry out [its] provisions” and to, “sua sponte, take[e] any action or mak[e] any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process.” Does section 105(a), though, authorize

On February 8, 2016 we reported on the decision of Judge Walrath of the United States Bankruptcy Court for the District of Delaware in 

Recently, in SEC v. Miller, No. 14-4261-cv (2d Cir. Dec.

Bond restructurings Implementation mechanisms: schemes vs. exchange offers December 2015 ■ a principal haircut; ■ extended maturity; and / or ■ a change in coupon (rate and/or whether the coupon is cash-pay or PIK). Exchange offers are based entirely on voluntary participation. They can only succeed if a critical mass of bondholders agrees to participate. A “carrot and stick” approach is used to incentivise participation and penalise holdouts. For background on the use of schemes of arrangement as restructuring tools, see here.

A recent decision by the United States Bankruptcy Court for the Southern District of New York may make it easier for debtors to obtain some relief from preferential payments to a foreign entity, even if the recipient of the transfer has no address in the United States. 

Earlier this month, we lost Judge Joseph E. Irenas, Senior United States District Judge for the District of New Jersey.  He is remembered as a thoughtful jurist, a dedicated teacher, and a valued mentor.  This blogger had the pleasure of meeting Judge Irenas only briefly, but his dignity and charm were immediately apparent. 

With fall weather now upon us, it may be hard to believe that those long weekends spent at the Hamptons were only weeks ago.  Those readers who fell behind on their bankruptcy blog reading due to poor Wi-Fi connection on the Jitney might have missed our post on 

“Render unto Caesar the things that are Caesar’s, and unto [CEC] the things that are [CEC’s] [?]” – Matthew 22:21 (as revised)