News & Analysis as of

Creditors Debtors Settlement

Nelson Mullins Riley & Scarborough LLP

Bondholders Fail to Thwart Global Settlement Approval as Bankruptcy Estate’s Largest Creditor

As bankruptcy practitioners, we generally see proposed settlements get approved without objection. However, when objections are lodged, court involvement is necessitated. In this case, United States Bankruptcy Judge...more

Goodwin

2021 Year in Review: Consumer Finance

Goodwin on

[co-authors: Amelie Hopkins, and Collin Grier] The year 2021 started with the hope of COVID-19 vaccines and a return to (relative) normalcy, only to conclude with new variants that presented new challenges and extended...more

Kerr Russell

Preparing For Mediation In Bankruptcy

Kerr Russell on

In a facilitative mediation, a neutral party serves as a mediator and works with the litigants to reach a settlement. The mediator has no power to rule or bind the parties to a judgment or decision, but rather facilitates a...more

Sheppard Mullin Richter & Hampton LLP

Head’s Up: Changes Made to Civil Code Section 1542

Civil Code section 1542 waivers are commonly included in a myriad of transactional documents and typically coupled with “as is” provisions. In essence, absent an express waiver of Section 1542 in a contract, the releasing...more

Patterson Belknap Webb & Tyler LLP

Let the Seller Beware? Debtor’s Attempt to Monetize its Own Default May Impact Sellers of Credit Default Swaps

The Sears bankruptcy case made headlines this month in the complex world of credit default swaps (CDS). A credit default swap is a contract pursuant to which the seller receives payment from a buyer in exchange for which the...more

Patterson Belknap Webb & Tyler LLP

Delaware District Court Dismisses Appeal by Creditors’ Committee After Case is Converted from Chapter 11 to Chapter 7

The Bankruptcy Code provides for the appointment of a creditors’ committee in chapter 11 bankruptcy cases. See 11 U.S.C. § 1102. There is no parallel provision applicable to chapter 7 cases. When a bankruptcy case is...more

Mintz - Bankruptcy & Restructuring Viewpoints

Bankruptcy Settlements Post-Jevic: Potential New Requirements for Priority-Altering Settlements

As noted in a recent Distressing Matters post, the United States Supreme Court in In re Jevic Holding Corp. held that debtors cannot use structured dismissals to make payments to creditors in violation of ordinary bankruptcy...more

Proskauer - Minding Your Business

An Offer You Can’t Refuse: Are Deathtraps a Tool for Fostering Settlements, or a Method of Coercion?

Accept an unpalatable offer, or reject it and risk getting much less (or even nothing)? This is the choice stakeholders in chapter 11 bankruptcies increasingly face as a result of the proliferation of “deathtrap” provisions...more

Morrison & Foerster LLP - Social Media

“Never Say Never”: Lessons From RadioShack’s Sale of Customer Information

When a bankrupt company’s most valuable assets include consumer information, a tension arises between bankruptcy policy aimed at maximizing asset value, on the one hand, and privacy laws designed to protect consumers’...more

Winstead PC

Beware Of "Pocket" Judgments In Settlement Negotiations

Winstead PC on

In settlements, we often request that the debtor enter into an agreed judgment, perhaps with a simultaneous forbearance agreement outlining a payment plan. Debtors are often reluctant to sign these and typically ask that the...more

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