Chapter 11

News & Analysis as of

Loan to Own: A Potpourri of Bankruptcy Attacks

Colony Beach & Tennis Club Ass’n, Inc. v. Colony Lender, LLC (In re Colony Beach & Tennis Club, Inc.), 508 B.R. 468 (Bankr. M.D. Fla. 2014) – Three affiliated debtors (RMI, CBTC and CBI) proposed a plan of...more

Loan to Own Variation: Bankruptcy May Not Provide The Answers

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

An Appeal of a Bankruptcy Sale Order May Be Moot Regardless of Whether the Seller Actually Had the Authority to Sell the Assets

A pair of recent decisions by the Ninth Circuit in In re Mortgages Ltd. underscore the power of the equitable mootness doctrine and the importance of obtaining stays of bankruptcy court orders to avoid having appeals of the...more

Alert: Ninth Circuit Expands the Limits of Post-Confirmation Injunctions and Non-Debtor Releases Under A Chapter 11 Plan

For years, it has been the rule in the Ninth Circuit that a chapter 11 plan cannot discharge or otherwise affect the obligation of a non-debtor owed to a third party. This view interprets section 524(e) of the Bankruptcy...more

New Jersey Bankruptcy Court Decision Protects Rights of Trademark Licensees - "Free and Clear" Sale of a Trademark or Intellectual...

The United States Bankruptcy Court for the District of New Jersey issued an opinion in In re Crumbs Bake Shop, Inc., No. 14-24287-MBK that provides significant protections for trademark licensees. The opinion was issued on...more

Cramdown Hurdles: How to Play the Classification Game (Or Not)

In re New Bride Missionary Baptist Church, 509 B.R. 85 (Bankr. E.D. Mich. 2014) – After the bankruptcy court denied confirmation of a debtor’s proposed chapter 11 plan of reorganization because there was no accepting...more

Blog: The Trend Of Protecting Trademark Licensees In Bankruptcy Continues: For The First Time A Court Extends Section 365(n)...

The latest example comes in the Crumbs Bake Shop, Inc. Chapter 11 bankruptcy case in New Jersey. On October 31, 2014, Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey rejected a motion by...more

Applicability of USTP Guidelines to Bankruptcy Administrators

Two institutions exist to ensure that bankruptcy cases are conducted in conformity with bankruptcy laws: the U.S. Trustee Program (USTP) and the Bankruptcy Administrator (BA) Program. 1 These institutions perform...more

A Fresh Start for Your Financials After Chapter 11

Business owners facing a Chapter 11 reorganization may feel that they’ve crossed a finish line when the bankruptcy court approves their reorganization plan. But companies face an additional set of accounting challenges once...more

Bankruptcy Beat: Connecticut Bankruptcy Court Rules on Issue of First Impression: Whether The Absolute Priority Rule Is Applicable...

Chief United States Bankruptcy Court Judge Julie A. Manning decided an issue of first impression in this District and the Second Circuit on September 4, 2014 in In re Richard and Stephanie Lucarelli and Lucarelli’s Executive...more

When Things Do Not Go As Planned In A Bankruptcy Sale

Buying distressed assets is big business. Many distressed assets are acquired through the seller’s Chapter 11 bankruptcy case. In those instances, a buyer will enter into a purchase and sale agreement with the...more

Bordering on Unlucky – Gift Card Holders May Not File Late Claims

Don’t wait to spend those gift cards sitting in your junk drawer. The Second Circuit Court of Appeals held in an October 29, 2014 decision that gift card holders may be out of luck trying to file claims for unused gift cards...more

New Value Does Not Need to Remain Unpaid

In In re Proliance International, Inc., et al., Judge Sontchi of the United States Bankruptcy Court for the District of Delaware held that a preference defendant’s preference exposure is reduced upon application of paid and...more

Blog: Should Attorneys Be Paid for Litigating Their Fee Requests? Supreme Court to Decide if Fee Defense Is a ‘Cost of Doing...

In a decision that will have profound implications for insolvency professionals of all types, the U.S. Supreme Court has agreed to hear an appeal of the 5th U.S. Circuit Court of Appeals’ decision that Section 330 of the U.S....more

Delaware Supreme Court Finds UCC Termination Filings Valid Despite Lack of Lender’s Intent

On October 17, the Delaware Supreme Court held that JP Morgan (JPM) terminated its security interest in all of the collateral provided by General Motors (GM) in support of a $1.5 billion loan, despite neither party intending...more

Proposed Bankruptcy Fairness and Employee Benefits Protection Act of 2014 would place significant restrictions on employers in...

Legislation recently introduced in the Senate would place many restrictions on the ability of a corporation navigating bankruptcy to change the compensation and benefits of employees and retirees. The bill would also create a...more

Tax Litigation Update: Ninth Circuit Decision Provides Significant Support for Taxpayers Seeking to Discharge Tax Debt in...

On September 15, 2014, the United States Court of Appeals for the Ninth Circuit issued a landmark decision strongly favoring debtors seeking to discharge tax debt in bankruptcy. The case, Hawkins v. Franchise Tax Board...more

Mainbrace - October 2014, No. 3

In This Issue: - Maritime Cybersecurity: A Growing Threat Goes Unanswered - Valuation in Maritime Chapter 11 Cases: Genco and “NAV” - Is the U.S. Prepared Legally and Operationally to Protect Its Arctic...more

Reducing a Customer's Accounts Receivable in the Zone of Insolvency

Reuters, Bloomberg and Debtwire are all reporting negative financial information about your customer: "Bond ratings are down-graded, bond prices are falling, a likely “restructuring” to address the bond debt,...more

Why colleges in bankruptcy should have access to federal financial aid

With the reauthorization of the Higher Education Act (HEA) in full swing, the time is ripe for Congress to reconsider current laws prohibiting postsecondary institutions that declare bankruptcy from participating in the...more

Sales Free and Clear: What About Restrictive Covenants?

Heatherwood Holdings, LLC v. HGC, Inc. (In re Heatherwood Holdings, LLC), 746 F.3d 1206 (11th Cir. 2014) – A chapter 11 debtor owned property that had always been used as a golf course and club. When it requested that...more

Third-Party Protections In Mass Tort Chapter 11 Cases

A defendant facing thousands of mass tort lawsuits in federal and state courts throughout the country often will seek to address the litigation by seeking Chapter 11 relief under the Bankruptcy Code. The Chapter 11 process...more

Escaping Taxes in Bankruptcy Through S Corporations

Shareholders of financially troubled S corporations may now be able to avoid the flow-through of taxes when the S corporation or its subsidiary files bankruptcy. ...more

Structured Dismissals – How They Work Part I: Court Authority for an Alternative Ending

Over the past decade, debtors have increasingly used the protections of Chapter 11 to sell substantially all of their assets in sales under section 363 of the Bankruptcy Code. As a result, post-sale debtors frequently have...more

'Loan-to-Own' Strategy May Lead to Limitation on Credit-Bidding

On April 14, in In re Free Lance-Star Publishing, 512 B.R. 798 (Bankr. E.D. Va. 2014), the U.S. Bankruptcy Court for the Eastern District of Virginia considered the objection of Chapter 11 debtors to a secured creditor's...more

191 Results
|
View per page
Page: of 8