CR&B Alert: Commercial Restructuring & Bankruptcy News - March 2011, Issue 1



• Gifting — page 2

• TOUSA Overturned; District Court Rejects Narrow Definition of ‘Equivalent Value’; Rejects Finding of Lenders’ Bad Faith — page 2

• Still in the Minority, 9th Circuit BAP Holds that Creditors May Seek Adequate Protection Retroactively — page 3

• Replacement Lien in Rents in Favor of Secured Creditor is Not Adequate Protection Where the Debtor Has No Equity Cushion — page 5

• Creditor/Debtor Agreement on Loan Payoff Can Result in ‘Impaired Accepting Class’ Where There is No Provision for Interest — page 6

• Contractual Representations and Warranties Provide Justifiable Reliance in Fraud Action — page 9

• Lender Justifiably Relied on Contractor’s Representations and Warranties, Thereby Maintaining First Priority Lien — page 10

• Original Lender Sues Refinance Lender for Failure To Pay Off Original Loan, Despite Lack of a Contract To Do So — page 11

• Creditor of Insolvent Delaware LLC is Not Entitled to Derivative Standing — page 12

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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