Chapter 11

News & Analysis as of

The Fisker Case and Its Impact on Distressed M&A

As is well known, the right to credit bid is the entitlement of a secured lender to bid the amount of its outstanding claims at the sale of its collateral. If the secured lender places the winning bid, no money is exchanged...more

Coldwater Creek Bankruptcy: Suppliers, Consider Remedies

On April 11, 2014 Coldwater Creek filed in Delaware for Chapter 11 bankruptcy reorganization. It follows filings in 2014 by Dots, January in New Jersey, and Ecko, April in New Jersey. For retailers, the most common motivation...more

Employment Law Newsletter - April 2014

In This Issue: - Fairfax Circuit Court Strikes Down Noncompete as Overbroad, Offering Yet Another Lesson for Employers - No WARNing of Bankruptcy? - Department of Labor Further Delays Publication of its Final...more

No WARNing of Bankruptcy?

When Reston-based Simplexity, LLC (known more commonly as Wirefly.com and its related sites) recently filed for chapter 11 bankruptcy it had, sadly, already terminated nearly its entire workforce. According to pleadings...more

Detroit Moves Forward with Swap Settlement, Post-Petition Financing, Plan of Adjustment

Last week, the City of Detroit Chapter 11 bankruptcy case saw a handful of developments. First, the City filed a motion seeking approval of a further revised proposed settlement with its swap counterparties. The City now...more

Private Equity Newsletter - Winter 2014: Recent Developments in Acquisition Finance

Several recent legal developments will likely impact acquisition finance. A recent decision of the U.S. Bankruptcy Court for the Southern District of New York examines who is an “Eligible Assignee” entitled to acquire...more

Recent Decision Caps Secured Creditor’s Credit Bid in §363 Sale to Purchase Price of Acquired Debt

It is well-settled that secured creditors are ordinarily entitled to credit bid their allowed secured claim in a sale pursuant to § 363 of the Bankruptcy Code (the “Code”). In Radlax Gateway Hotel, LLC v. Amalgamated Bank,...more

Why Would an Individual or Business File for Chapter 11 Bankruptcy Instead of Chapter 13?

Both businesses and individuals who own a business can use Chapter 11 or Chapter 13 bankruptcy to obtain debt relief through new loan repayment terms. Still, even though the two chapters seem similar at a glance, there are...more

Closing the Chapter 7 Loophole for High Income Debtors

Heralded by debtor’s attorneys as “a wonderful loophole”1 in the Bankruptcy Code, a debtor who has primarily business, rather than consumer, debts can qualify for a speedy Chapter 7 discharge despite a high earning capacity...more

In re Fisker Automotive Holdings, Inc.—Delaware District Court Refuses to Hear Distressed Investor’s Appeal of Order Limiting...

On January 17, 2014, the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) entered an order in the Fisker Automotive (“Fisker”) chapter 11 bankruptcy cases limiting the ability of Fisker’s...more

How Exposed are Holders of Offshore Chinese Bonds?

In late 2013, Latham & Watkins hosted a restructuring conference, Maximizing Outcomes in Upcoming Asia Restructurings, at the Asia Society in Hong Kong. The conference featured a series of keynote speakers and panel...more

Dirt-for-Debt Buries Creditor with Risk and Uncertainty

In order to confirm a chapter 11 plan of reorganization, a debtor must satisfy all the provisions of §1129(a) of the Bankruptcy Code, except for §1129(a)(8). Section (a)(8) requires that each class of creditors either (i)...more

The Big “B” – Bankruptcy on the Construction Project

It’s not often that I find myself in bankruptcy court, but there I was. A lone construction attorney surrounded by bankruptcy lawyers speaking in a foreign tongue – “cram down!,” “cash collateral!,” “executory...more

Specialized Forms of Bankruptcy in Georgia

The three most common types of bankruptcy — Chapter 7, Chapter 13 and Chapter 11 — account for nearly all business and personal bankruptcy filings in Georgia and the rest of the United States. There are also several other...more

"Using Chapter 11 to Restructure Non-US and Multinational Companies"

Chapter 11 of the U.S. Bankruptcy Code is the most well-developed law of any insolvency regime in the world for helping troubled companies restructure their affairs. Some nations, like Canada and the United Kingdom, also have...more

"Chapter 11 Strategies Increasingly Appeal to Banks in Need of Recapitalization"

Historically, the Chapter 11 bankruptcy process was not used as a technique to recapitalize struggling banks. An aversion to using Chapter 11 was attributable in part to concerns that regulators and depositors might perceive...more

"Enforcement of Make-Whole Provisions in Bankruptcy: The Importance of Careful Drafting"

Indentures typically contain provisions that offer protection to bondholders and borrowers in the event of early repayment of or, in some instances, default on the loan. This includes make-whole provisions, which...more

"The Unsafe Harbor: The Tribune Decision and the Erosion of Bankruptcy Code Section 546(e)"

A 2013 court decision has cast doubts over the future scope of the U.S. Bankruptcy Code’s safe harbor protections against the reversal of settled securities transactions. If the ruling stemming from the Tribune Company...more

How Does Bankruptcy Affect Your Business?

Jeff Field & Associates focuses primarily on personal bankruptcy, but there can be some overlap between personal and business bankruptcy. If your business is established as a limited liability company under Georgia...more

Sixth Circuit Clarifies Burden of Proof on Lien Validity and Confirms Availability of Defensive Avoidance Powers

On December 17, 2013, the United States Court of Appeals for the Sixth Circuit issued an opinion in the matter of Grant, Konvalinka & Harrison, P.C. v. C. Kenneth Still, (Case No. 12-6374) resolving two bankruptcy issues of...more

What Role Do Creditors Play?

There are a lot of things you and your bankruptcy attorney can do to help the process move as smoothly as possible. Unfortunately, however, not everything is within your control. Depending on the type of bankruptcy relief you...more

The Interplay Between Personal and Business Bankruptcy

There is usually a sharp distinction between personal bankruptcy and business bankruptcy. Certain types of bankruptcy are only available to individuals, and individual debtors filing for bankruptcy may face stricter...more

Stay Away: Some Exceptions And Bases For Relief From The Bankruptcy Code’s Automatic Stay

The automatic stay provided for by section 362 of the Bankruptcy Code is triggered immediately upon the filing of a debtor’s petition with the Bankruptcy Court. Unfortunately, many business owners and managers have a basic...more

Bill on Bankruptcy: Big Time Lawyers Pricing Themselves Out [Video]

Dec. 19 (Bloomberg) -- Two significant Chapter 11 reorganizations in the Southern U.S. may be signs that lawyers in New York and Delaware are starting to price themselves out of the market, as Bloomberg Law's Lee Pacchia and...more

Bankruptcy Poison Pills – New Attempts To Avoid Absolute Priority

INTRODUCTION - Recently, bankruptcy lawyers representing debtors, whether or not they are conscious of the parallels, have begun including provisions in their chapter 11 plans which can best be described as poison...more

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