CR&B Alert: Commercial Restructuring & Bankrtupcy News - September 2010, Issue 3



• Sellers Beware — Unauthorized Payments from ‘Cash Collateral’ Will be Avoided — page 2

• The Third Circuit Expands the Substantial-Performance Test to Determine if a Trademark License Contract is Executory — page 3

• Court Breaks from Majority Rule, Granting Retirees Post Petition Rights Greater than Pre-Petition Rights — page 4

• Landlords Successful in Obtaining Stub Rent as an Administrative Expense Under Section 503 — page 6

• Delaware Bankruptcy Court Finds Appointment of Examiner Not Required Every Time the Statutory Debt Threshold is Exceeded — page 7

• The Third Circuit Overrules a Long-Standing Case, Changing the Ability of Personal Injury Plaintiffs to Bring Suit Against Debtors — page 9

• Defense of Imputation of an Agent’s Bad Conduct to its Principal Clarified in Pennsylvania; Independent Auditor at Risk for $1 Billion in Damages — page 10

• Sanctions Awarded Under the Bankruptcy Court’s ‘Inherent Authority’— page 12

• Texas District Court Affirms the Contractual Default Interest Rate Where the Debtor is Solvent — page 13

• An LLC Member/Manager is an ‘Insider,’ so that Payments Are Preferential Transfers Subject to Avoidance Up to One Year Prior to Bankruptcy Filing — page 14

• Broader Economic Woes May Have Played a Part in the Court’s Decision to Dismiss Allegations of Lender Overreaching — page 15

• Risk Losing Your First Priority Lien if You Provide Superfluous Information in the UCC Financing Statement — page 17

• Landlord’s Corner — page 18

• Counsel’s Corner — page 20

Please see full newsletter below for more information.

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Reed Smith on:

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