CR&B Alert: Commercial Restructuring & Bankruptcy News - June 2011, Issue 2



• What You Need to Know About the Proposed New Liquidation Regime under Dodd-Frank — page 2

• In a Case of First Impression, the Third Circuit Holds that Discounted Cash Flow Analysis May be Used as a ‘Commercially Reasonable Determinant of Value’ with Respect to Repurchase Agreement Acceleration Under Section 562 — page 2

• Claims Trader Loses Out on Cure Payments Where Debtor’s Approved Plan Permits Post-Confirmation Rejection of Executory Contracts — page 3

• Trademark License Agreement Defines Materiality, Effectively Establishing a Perpetual Executory Agreement Subject to Perpetual Rejection — page 4

• Security Interest in FCC License and Proceeds Thereof is ‘After-Acquired’ Property Where No Sale Agreement Executed Pre-Petition, Wiping Out Lender’s Lien — page 5

• FAA Registration Law Does Not Preempt State UCC Where Partially Completed Airplanes Fail To Satisfy FAA Definition of “Aircraft” — page 7

• Collateral-Order Doctrine Utilized in a Case of First Impression; Court Affirms Broad Equitable Powers of a Receiver — page 8

• Court Holds that ‘All Value’ Must be Considered in Determining ‘Reasonably Equivalent Value’ in Fraudulent Transfer Case — page 9

• Debtor Unable to Provide Adequate Assurance; Court Denies Motions to Use Cash Collateral and Obtain DIP Financing Priming Original Lien — page 10

• Priming Lien Approved: New Loan Use Would Benefit the Estate + Debtor’s Sizable Equity Cushion = Adequate Assurance — page 11

• Court Vacates the Foreclosure Sale and Awards Damages, Finding that the Lender Violated the Automatic Stay by Proceeding with the Sale Where Debtor Guaranteed the Loan, but Had No Ownership Interest — page 13

• Court Grants Parent Companies Standing To Sue Lender as Third-Party Beneficiaries of Loan Commitment Agreements — page 14

• Landlord’s Corner — page 15

• The New Fast-Track Restructuring Procedure in French Insolvency Law: The ‘Accelerated Financial Safeguard Procedure’ — page 15

• Counsel’s Corner: News From Reed Smith — page 17

Please see full newsletter 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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