U.S. Bankruptcy Court does not enforce an asset freeze order from a Brazilian insolvency proceeding recognized under chapter 15 of the Bankruptcy Code.
Recognition of a foreign proceeding under chapter 15 of the Bankruptcy...more
10/3/2024
/ Asset Freeze ,
Bankruptcy Code ,
Bankruptcy Court ,
Brazil ,
Chapter 15 ,
Comity ,
Commercial Bankruptcy ,
Damages ,
Debtors ,
Federal Rules of Civil Procedure ,
Foreign Investment ,
Insolvency ,
Piercing the Corporate Veil ,
SCOTUS
Two recent bankruptcy court decisions reflect a split of authority on subchapter V eligibility.
In re Macedon Consulting Inc. finds that all future amounts due under an unexpired lease qualify as “noncontingent and...more
3/13/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Business Ownership ,
Chapter 11 ,
Commercial Leases ,
Debt Collection ,
Investors ,
Landlords ,
Liability ,
Liquidity ,
Reorganizations ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA)
Lacking a common scheme or plan, two adjacent commercial condominium units owned by the same debtor and subject to the same mortgage and deed, but having different tenants, commercial uses, plans for commercial development...more
The bankruptcy court’s decision in Svenhard’s provides a path forward for potentially increased creditor recoveries.
To assume an agreement under section 365, the agreement must be an “executory contract,” which generally...more
There are no shortage of bankruptcy considerations that must be understood by an incoming lender who acquires a distressed commercial real estate loan and whose borrower shortly thereafter files for bankruptcy protection. For...more
Asset purchasers that have actual or constructive knowledge of a competing interest yet fail to alert the bankruptcy court may be subjecting them to claims by competing interest holders in an otherwise free and clear sale....more
Congress introduces legislation to extend the $7.5 million debt ceiling for Subchapter V eligibility for an additional year to March 27, 2022.
Subchapter V was designed to be a cost-effective distress tool for small...more
While the recent Bankruptcy Code amendments allow small business debtors to extend their deferral of lease obligations beyond the first 60 days of the bankruptcy case, the amendments raise and leave unanswered important...more
1/27/2021
/ Bankruptcy Code ,
Bifurcation ,
CARES Act ,
Chapter 11 ,
Commercial Leases ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Debtors ,
New Amendments ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA)
A recent Chuck E. Cheese decision rejects the debtor’s/tenant’s request to avoid paying rent based upon state law equity arguments.
CEC’s leases expressly do not permit rent relief even if force majeure is triggered....more
A recent Chuck E. Cheese decision denies the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday.”
The Bankruptcy Court applied the “plain language” rule to hold that section 365(d)(3)’s rent...more