News & Analysis as of

Bad Faith Commercial Bankruptcy

Patterson Belknap Webb & Tyler LLP

Eighth Circuit Issues Decision on Involuntary Bankruptcy Case and Damages Arising from a Bad Faith Filing

An appeals court has issued an insightful decision on the availability of damages when an involuntary bankruptcy petition is filed in bad faith. See Stursberg v. Morrison Sund PLLC, No. 23-1186, 2024 U.S. App. LEXIS 20286...more

Holland & Knight LLP

Delaware Bankruptcy Court Grants Creditors' Committee of Debtor LLC Derivative Standing

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In a recent opinion, In re Pack Liquidating, LLC (Pack Liquidating), the U.S. Bankruptcy Court for the District of Delaware held that under Official Committee of Unsecured Creditors of Cybergenics Corp. v. Chinery...more

Fox Rothschild LLP

LTL Management, LLC Bankruptcy Dismissed (Again)

Fox Rothschild LLP on

The LTL Management, LLC (“LTL” or the “Debtor”) bankruptcy saga may be coming to an end for a second time, at least for now. On January 30, 2023, the Third Circuit issued its opinion reversing the Bankruptcy Court after...more

Farrell Fritz, P.C.

New York Judge Spares NRA “Corporate Death Penalty”

Farrell Fritz, P.C. on

The National Rifle Association has long been a politically charged topic for its fans and critics. For those of you more interested in the politics of the NRA’s ongoing battle with New York’s Attorney General Letitia James,...more

Kramer Levin Naftalis & Frankel LLP

Northern District of Texas Bankruptcy Court Dismisses NRA Bankruptcy Cases

The Northern District of Texas Bankruptcy Court in In re National Rifle Association of America and Sea Girt LLC, Case No. 21-30085 (Bankr. N.D. Tex. May 11, 2021), ECF No. 740, dismissed the National Rifle Association...more

Ward and Smith, P.A.

Their Aim Wasn't True – The NRA and Bad Faith Bankruptcy Filings

Ward and Smith, P.A. on

Bankruptcy offers a temporary sanctuary for parties seeking relief from a variety of problems – financial crisis, lawsuits, collection actions, repossessions, foreclosure, and pandemics. Filing bankruptcy before a money...more

Dorsey & Whitney LLP

Bankruptcy Topics In Distressed Real Estate

Dorsey & Whitney LLP on

Bankruptcy cases involving commercial real estate present a multitude of problems. Those problems typically arise in the context of voluntary cases filed under chapter 11 of the Bankruptcy Code, 11 U.S.C. §§ 101-1532...more

Pullman & Comley, LLC

The NRA's Chapter 11 Filing Takes Aim at the State of New York: Is it off Target?

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The National Rifle Association (commonly known as the NRA), a New York not-for-profit corporation with its principal place of business in Virginia, has tested the limits of how accommodating Chapter 11 can be to a solvent...more

Hinshaw & Culbertson LLP

FDCPA Claims Dismissed As a Result of Plaintiff's Bad Faith Bankruptcy Conduct

In Vedernikov v. Atl. Credit & Fin., Inc., (Vedernikov I), the U.S. District Court of New Jersey granted the defendant Midland Funding's motion to dismiss, which successfully argued the plaintiff should be estopped from...more

Dechert LLP

Global Private Equity Newsletter - Winter 2019 Edition: Recent Developments in Acquisition Finance: Ninth Circuit Rejects Broad...

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Those seeking to purchase assets or a business out of a Chapter 11 case employing a “loan to own” strategy may well have received a boost from a recent decision of the U.S. Court of Appeals for the Ninth Circuit....more

Perkins Coie

In re Fagerdale USA-LOMPOC Inc.: Defensive Purchase of Claims to Avoid Cramdown Deemed Not “Bad Faith”

Perkins Coie on

A secured lender facing the prospect of having the essential provisions of its loan re-written in a Chapter 11 plan of reorganization will look for options to prevent or minimize the likelihood of such a revision. Chapter 11...more

Patton Sullivan Brodehl LLP

Loan Guaranties: Statutory and Legal Defenses Can Be Waived, But What About Equitable Defenses?

Guarantors of loans occupy a vulnerable position under California law. While direct borrowers often benefit from California’s robust statutory anti-deficiency framework, those protections are often unavailable for...more

Holland & Knight LLP

Second Circuit Confirms Physical Suppliers Don't Have Maritime Liens - Bank's Liens Still in Dispute in O.W. Bunker Case

Holland & Knight LLP on

• In the legal battle of competing maritime lien claims against vessels whose charterers contracted with O.W. Bunker & Trading A/S or its affiliates in October-November 2014, an important decision was issued this week by the...more

Dechert LLP

Restructuring and Insolvency Bulletin: Issue 4 - May 2018: Bad Faith and Misconduct Not a Bar to US Recognition of Hong Kong...

Dechert LLP on

Manley Toys Limited once claimed to be the seventh largest toy company in the world. Due to ongoing litigation and declining sales, it entered into a voluntary liquidation in Hong Kong. On March 22, 2016, the debtor’s...more

Polsinelli

The Devil's Dictionary of Bankruptcy Terms: Forum Shopping

Polsinelli on

The "Devil's Dictionary" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary and used in today's bankruptcy...more

Burr & Forman

Court Denies Creditor’s Motion to Dismiss Chapter 11 Case Despite Multiple Factors in Favor of Dismissal

Burr & Forman on

In a recent case out of the bankruptcy court for the Southern District of Florida (the “Court”), a secured creditor moved to dismiss a debtor’s bankruptcy case “for cause” based on the debtor’s bad faith filing. The debtor...more

McCarter & English, LLP

Delaware Law Updates - 2016 Year in Review

Our Delaware Corporate and Alternative Entity Law attorneys closely followed the opinions coming from Delaware’s Supreme Court and Court of Chancery. Our 2016 Year in Review is a collection of brief summaries of selected...more

Pullman & Comley, LLC

Cancel My Reservation! Pennsylvania Sows Confusion Over Consent-to-Settle Clauses

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This summer, the Supreme Court of Pennsylvania addressed an important question that has divided other courts: if an insurer defends a claim subject to a reservation of rights, may the insured settle the claim without the...more

Saul Ewing LLP

Bad Faith Sentinel - September 2015

Saul Ewing LLP on

Kennedy v. Allstate, No. 15-2221 (E.D. Pa. July 8, 2015). District Court recognizes possibility that insurance adjusters owe a duty of care to insureds that would be breached by failing to conduct a reasonable...more

Baker Donelson

Claim Purchasing as a Strategy to Avoid a Cramdown

Baker Donelson on

While there are many factors that can lead a business or individual to file a chapter 11 bankruptcy petition seeking to reorganize a business, often times, particularly in a single-asset real estate case, the primary impetus...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - July 2015

In the Context of a Bad Faith Claim, Insurer’s Defense That Coverage Denial Was Reasonable Put at Issue Otherwise Protected Attorney-Client and Work Product Communications - Why it matters: Recognizing the “conflicting...more

Shumaker, Loop & Kendrick, LLP

Neither a Borrower Nor a Lender be ...

Many lawyers have written articles about a February 27, 2015 U.S. Court of Appeals (11th Circuit) ruling (In re Maury Rosenberg) against petitioning creditors of an involuntary Chapter 7 proceeding. INTRODUCTION - ...more

Troutman Pepper

Real Estate Cases: Bad Faith Filing Does Not Necessarily Mean That You Are A Bad Person

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In re Sterling Bluff Investors, LLC, 515 B.R. 902 (Bankr. S.D. Ga. 2014) – A mortgagee moved to dismiss a real estate debtor’s chapter 11 case, or in the alternative for relief from the automatic stay. It contended...more

Troutman Pepper

Loan to Own Variation: Bankruptcy May Not Provide The Answers

Troutman Pepper on

In re SR Real Estate Holdings, LLC, 506 B.R. 121 (Bankr. S.D. Cal. 2014) – A group of lenders moved to dismiss the debtor’s bankruptcy case on the basis that it was filed in bad faith, or in the alternative asked the...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - September 2014 #2

D&Os Entitled to Unfettered Access to Bankrupt Company’s Policy Proceeds to Fund Defense Costs: Why it matters - In an important victory for directors and officers of a bankrupt company, a New York court...more

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