Commercial Restructuring & Bankruptcy Alert - October 2012


In This Issue:

- Announcing Our New Cross-Border Insolvency and Restructuring Practice, and New Singapore Office

- ‘Unfinished Business’ Doctrine in Law Firm Dissolutions is the Subject of Recent Opposing Decisions Within the Same District

- Third Circuit Court of Appeals Again Modifies the Definition of ‘Claim’ by Including ‘Post-Petition, Pre-Confirmation’ Exposure

- Low-Income Housing Tax Credits Must be Included in Valuing Section 506(a) Collateral

- Pennsylvania Supreme Court to Determine if Guaranty Signed Under Seal is an ‘Instrument’

- Purchased Claims Are Subject to Preference Disallowance Under Section 502(d)

- Another Court Chimes in on Validity of Intercreditor Assignment of Voting Rights

- Letter of Credit Payment Made Independent of Bond Indenture is Not a ‘Settlement Payment’ Protected by Section 546(e)

- Third Circuit Clarifies Burden of Proof Analysis Under Section 506(a) Valuation, and Allows Lien Stripping in Chapter 11

- ‘Contingent Claim’ Not Sufficient To Establish Right of Setoff for Lift-Stay Motion

- Secured Blanket Lien on Inventory Trumps Reclamation Rights

- ‘Intent’ Inferred, Summary Judgment Granted in Debt Recharacterization Case

- Reasonableness of Pre-Petition Default Rate Under Section 506(a) Not Subject to Equitable Analysis

- Counsel’s Corner: News From Reed Smith


In re Coastal Broadcasting Systems, Inc., Case No. 11-10596 (Bankr. D. N.J. July 6, 2012) -

CASE SNAPSHOT - At confirmation, the bankruptcy court considered whether the assignment of voting rights in an intercreditor agreement was enforceable. The bankruptcy court noted that various courts had reached differing conclusions, but ultimately found that the voting assignment in the intercreditor agreement before it was enforceable.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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