Insolvency

Bond is Back

by Jonathan Bloom, James Douglas, Mike Goetz, Tony Horspool, Michael Kazakevich, Daniel Martin, W. Jane Rogers | Ropes & Gray LLP on 5/17/2013

Opportunities for investors in European HY Debt - Record amounts of HY issuance in Europe since 2010, much of which has refinanced the LBO bank debt maturity wall - Potential for significant restructuring...more

Rolling back the point of no return: the English Supreme Court clarifies the balance sheet insolvency test

by Edward Mathison, Charlotte Møller | Reed Smith on 5/9/2013

The English Supreme Court’s eagerly awaited decision on the Eurosail litigation, concerning how the “balance sheet” test for insolvency should be applied, was released today. The decision clarifies how courts should apply the...more

Rogers Towers: What can Twinkies and Beer Teach Investors about Purchasing the Assets of an Insolvent Corporation?

by Scott St. Amand, J. Ellsworth Summers, Jr. | Rogers Towers on 5/9/2013

When Hostess announced last November that it would be shutting the doors to its factories, spooked by the news and likely addled by decades of cream filling, hoarders of Ho-Ho’s scurried to buy every brand name snack cake...more

Where Do Your Interests Lie Under Chapter 15 of the Bankruptcy Code? Determining a foreign debtor’s “center of main interests”...

by Eric R. Blythe, Kevin J. Walsh | Mintz Levin - Bankruptcy, Restructuring &... on 5/1/2013

When doing business with a foreign company, it is important to identify the company’s “center of main interests” (“COMI”) as creditors may find themselves bound by the laws of the COMI locale. If a company initiates...more

On Appeal: The Michigan Court of Appeals Overturns It's Prior Ruling and Affirms the State's 2012 Legislation, Nonrecourse...

by Matthew Ginsburg | Dechert LLP on 4/30/2013

As we have discussed numerous times in this blog, the downturn in the commercial real estate market resulted in much litigation as to guarantor liability for non-recourse debt. As a brief refresher, many of the non-recourse...more

Second Circuit Establishes Relevant Time Period for "Center of Main Interests" Determination Under Chapter 15 of the Bankruptcy...

by Rosanne Ciambrone, Rudolph J. Di Massa Jr, William Heuer, Ron Oliner | Duane Morris LLP on 4/29/2013

In Morning Mist Holdings Limited v. Krys (In re Fairfield Sentry Limited), Case No. 11-4376, 2013 WL 1593348 (2d Cir. April 16, 2013), the United States Court of Appeals for the Second Circuit (the "Second Circuit") held that...more

TRANSACTIONAL: Bankruptcy: Contractor Insolvency Issues in Large Project Transactions

by King & Spalding on 4/19/2013

An issue that is often overlooked, but should be considered in the context of large project transactions, is the potential insolvency of contractors and subcontractors. A bankruptcy proceeding involving a key contractor can...more

Always Be Prepared: Forecasting a Business Partner's Financial Problems and How to Prepare

by Christopher Giaimo, Donald Workman | BakerHostetler on 4/19/2013

As the American economy continues to slog through the ongoing Great Recession, even financially sound companies face challenges due to the continued economic malaise. In particular, a company that works with suppliers,...more

Continuation of contracts under an insolvency proceeding governed by French law: Better be short!

by Olivia Lê Horovitz, François Lan | K&L Gates LLP on 3/25/2013

When a company is in good standing and healthy, the question of the renewal of a contract or its duration arises only in a competitive environment. In case of an insolvency proceeding, the situation is more complex, notably...more

The Limited Liability Company and Bankruptcy Code

by David Murdoch | K&L Gates LLP on 3/5/2013

This K&L Gates Legal Insight highlights certain potential bankruptcy and insolvency issues that clients and legal practitioners should take into account when forming a limited liability company (“LLC”) under state law. These...more

Vitro Update: “Savings Clause” Fails to Save Vitro Subsidiaries From Involuntary Bankruptcy

by David E. Kronenberg, Casey Servais | Cadwalader - Financial Restructuring on 2/28/2013

Shortly after the U.S. Court of Appeals for the Fifth Circuit refused to enforce Vitro SAB’s Mexican plan of reorganization in the United States (covered here), Judge Harlin D. Hale of the U.S. Bankruptcy Court for the...more

German Supreme Court renders ipso facto clauses invalid and unenforceable – Roma locuta, causa finita?

by Volker Gattringer | K&L Gates LLP on 2/27/2013

An ipso facto clause is a contractual provision which states that a contract or agreement automatically terminates or may be terminated by a party if bankruptcy proceedings have been instituted over the other party’s assets....more

Commercial Restructuring & Bankruptcy Alert - February 2013

by Peter Clark, Joseph Filloy, Joanne Finch, Marsha Houston, Jeanne Stancampiano Lofgren, Elizabeth McGovern, Charlotte Møller, Ann Pille, Christopher Rivas, Jared Roach, Richard Robinson, more +Brian Schenker, Alison Wickizer Toepp, Lauren Zabel | Reed Smith on 2/21/2013

In this Issue: - Lenders Beware - International Insolvency Laws: Will One Size Fit All? The Debate Continues - ‘Fair and Equitable’ Means More Than Amortization Schedule - Pre-Petition Security License...more

Real Estate Finance Deals: Jersey Law Update

by Katie Hillier, Jonathan Lawrence, Nadia Saleh | K&L Gates LLP on 2/18/2013

Jersey LLPs: a new dawn as investment and property holding vehicles A recent amendment to the Limited Liability Partnership (Jersey) Law 1997 (the "Law") could see Jersey Limited Liability Partnerships (Jersey LLPs) gain...more

"I Knew You Were Trouble": Recent Trends in Lender Liability Litigation

by Timothy Lupinacci | Baker, Donelson, Bearman, Caldwell &... on 2/15/2013

Lender liability claims generally arise in one of following contexts: (i) claims seeking recovery of damage or "leverage" to accept discounted payoffs; (ii) counterclaims to foreclosure/receivership/guarantor actions; or...more

Indalex: What Are the Pension Implications?

by Lesha Van Der Bij | Osler, Hoskin & Harcourt LLP on 2/13/2013

On February 1, 2013, the Supreme Court of Canada released its much anticipated decision in Sun Indalex Finance, LLC v. United Steelworkers, a case which pitted the claims of pensioners against those of secured creditors in...more

Seventh Circuit Affirms Dismissal of Former Bank Executive's APA and FIRREA Claims

by Jason F. Clouser, William M. Regan | Katten Muchin Rosenman LLP on 2/13/2013

The US Court of Appeals for the Seventh Circuit recently affirmed an Illinois district court’s dismissal of claims brought by the former chairman and controlling stockholder of an Illinois-state chartered bank against the...more

Rogers Towers: Forward Contracts for Commodities not Avoidable as Preferential Transfers

by Scott St. Amand, J. Ellsworth Summers, Jr. | Rogers Towers on 2/12/2013

Because debtors may avoid certain transfers and contracts entered into during the ninety days before they filed their bankruptcy petition, trade creditors are understandably nervous about entering into contracts with...more

Indalex: Supreme Court of Canada Decision Released

by Kenneth Kraft, John Salmas, Sara-Ann Van Allen | Heenan Blaikie LLP on 2/12/2013

The Supreme Court of Canada (“SCC”) recently released its much-anticipated decision in the Indalex Limited (“Indalex”) proceedings under the Companies’ Creditors Arrangement Act (the “CCAA Proceedings”). The decision is...more

Indalex – Priorities and Pension Deficiencies

by Richard Borins, Michael De Lellis, Scott Horner, Kevin Morley, Edward Sellers | Osler, Hoskin & Harcourt LLP on 2/8/2013

On Friday, February 1, 2013, the Supreme Court of Canada released its highly anticipated decision in Indalex Limited (Re). The ruling stemmed from an appeal of an Ontario Court of Appeal decision that had created commercial...more

Update on Preparing Living Wills for Bank Holding Companies and Depository Institutions

by Joseph T. Lynyak III, Rodney R. Peck | Pillsbury Winthrop Shaw Pittman LLP on 2/8/2013

This analysis updates a previous memo and incorporates advice we have received from the Federal Reserve Board (“FRB”) and the Federal Deposit Insurance Corporation (“FDIC”) regarding the preparation of living wills for bank...more

Employee Benefits in an Insolvency

by Domenico Magisano | Lerners LLP on 2/5/2013

In a judgment rendered in December 2012, the British Columbia Court of Appeal (“BC CA”) further clarified an insurer's priority for payment of unpaid health plan contributions. In Re: Ted Leroy Trucking Ltd. the bankrupt had...more

Insolvency Legislative Update - February 2013

by Gary Kaplan | Farella Braun + Martel LLP on 2/5/2013

California enacted a number of pieces of legislation over the last year or so of great importance to insolvency professionals. These include bills impacting mortgage foreclosures, sales of tax-defaulted property, wage...more

Rogers Towers: Use of FDIC Special Powers: Knowledge by the FDIC or its Assignees is Irrelevant

by Scott J. Kennelly | Rogers Towers on 2/5/2013

In previous posts, we introduced the protections afforded the FDIC by the D’Oench Doctrine and 12 U.S.C. § 1823(e), which bar claims and defenses against the FDIC and its assignees by private parties based on improperly...more

Obligations To Pensioners In An Insolvency: Supreme Court Clarifies The Law

by Mary Picard | Dentons on 2/4/2013

The Supreme Court of Canada overturned the Ontario Court of Appeal today in what is one of the most highly-anticipated cases for the pension and insolvency bars pending before the courts. In Indalex (Re) 2013 SCC 6, the court...more

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