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Creditors Equitable Subordination

Jones Day

Bankruptcy Court Recharacterizes Purported Loan as Equity

Jones Day on

It is generally recognized that a bankruptcy court has the power—either equitable or statutory—to recharacterize a purported debt as equity if the substance of the transaction belies the labels the parties have given it. A...more

Jones Day

Creditors' Committee Denied Standing to Bring Derivative Claims on Behalf of LLC Debtor in Bankruptcy

Jones Day on

The practice of conferring "derivative standing" on official creditors' committees to assert claims on behalf of a bankruptcy estate in cases where the debtor or a bankruptcy trustee is unwilling or unable to do so is a...more

Jones Day

Another Bankruptcy Court Joins the Majority Camp on Post-Plan Confirmation Setoff

Jones Day on

In In re Rogers Morris, 2020 WL 1321894 (Bankr. N.D. Miss. Mar. 16, 2020), the U.S. Bankruptcy Court for the Northern District of Mississippi contributed to an existing split among the courts by joining the majority view in...more

Bennett Jones LLP

The New Duty of Good Faith in Canadian Insolvency Proceedings

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Canada’s two main insolvency and restructuring statutes, the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA) were recently amended to include a new duty of good faith on the part of all...more

Mintz - Bankruptcy & Restructuring Viewpoints

Insider Loans Equitably Subordinated

In SGK Ventures, LLC, the Bankruptcy Court for the Northern District of Illinois ordered that the secured claims of two entities controlled by insiders of the debtor be equitably subordinated to the claims of unsecured...more

Dorsey & Whitney LLP

In re Alternate Fuels, Inc.: Key Takeaways for Venture Capitalists Working with Emerging Companies

Dorsey & Whitney LLP on

Venture capitalists (“VCs”) often provide needed debt financing such as bridge loans to emerging companies in financial distress. However, given their insider status with these companies, VCs may encounter issues with such...more

Cooley LLP

Delaware Bankruptcy Court Denies Derivative Standing to Creditor Seeking Recharacterization

Cooley LLP on

In that case, Walnut Creek Mining Company (“Walnut Creek”), the debtor Optim Energy’s largest unsecured creditor, sought standing to pursue recharacterization, equitable subordination, and fiduciary duty claims on behalf of...more

Latham & Watkins LLP

Spanish Insolvency Act Amendment Offers Comfort to Parties in Sareb Transactions

Latham & Watkins LLP on

On November 30, 2013, the Spanish legislator approved a recent amendment to Spanish insolvency law, introduced in March 2013, to clarify that a claim transferred to Spanish “bad bank” Sareb, and subsequently sold by Sareb to...more

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