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Creditors Involuntary Bankruptcy

Troutman Pepper

What Is an Assignment for the Benefit of Creditors and How Does It Differ From a Bankruptcy? - Creditor’s Rights Toolkit

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An assignment for the benefit of creditors (ABC) is a process by which a financially distressed company (referred to as the assignor) transfers its assets to a third-party fiduciary (referred to as the assignee). The assignee...more

Troutman Pepper

What Is an Involuntary Bankruptcy and How Can Creditors Use This Powerful Tool? - Creditor’s Rights Toolkit

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In most bankruptcies, the company decides to file for relief. In involuntary bankruptcies, creditors force the company into bankruptcy. Involuntary petitions are an extreme remedy, and therefore the requirements and standards...more

Ward and Smith, P.A.

Don't Disrespect the Receivership

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A recent decision by the North Carolina Business Court highlights the risks of interfering with property that is part of a receivership estate. The North Carolina Commercial Receivership Act celebrated its three-year...more

Lowenstein Sandler LLP

Must See TV Azteca! Bankruptcy Court Dismisses Involuntary Petition Based on Partially Diputed Claims

One of the requirements for an involuntary filing is that the creditors seeking relief (referred to as “petitioning creditors”) must each have a claim that is not subject to a “bona fide dispute as to liability or amount.”...more

Seward & Kissel LLP

Taxing Solution, Settlement Smack Down, Involuntary Reaction, and Regulatory Risk

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Endo creditors seek to resolve U.S. government claims for $465 mln| Reuters - According to court documents filed last week, Endo and a group of the company’s lenders are offering up to $465 million to settle U.S. government...more

Kerr Russell

No Foolin’: Bankruptcy Code Changes Go Into Effect On April 1

Kerr Russell on

For both debtors and creditors, the numbers are important in a bankruptcy proceeding. The Judicial Conference of the United States has announced that certain dollar amounts and dollar limitations in the U.S. Bankruptcy Code...more

Bowditch & Dewey

Six Questions About Involuntary Bankruptcy

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Trying to collect money from someone who cannot or will not pay you is frustrating. That old chestnut about throwing good money after bad comes to mind. Placing an individual or firm (your “debtor”) into bankruptcy is a...more

Patterson Belknap Webb & Tyler LLP

Federal Appeals Court Rules on Requirements for Involuntary Bankruptcy

Section 303 of the Bankruptcy Code allows creditors to initiate an involuntary bankruptcy case against a debtor. The petition initiating the case must be filed by creditors holding claims aggregating to at least $10,000, and...more

Patterson Belknap Webb & Tyler LLP

Close Enough: Fifth Circuit Holds That Section 510(B) of the Bankruptcy Code Requires Subordination of Payments That “Look a Lot...

In 1930, Clarence Bennett’s wealthy uncle died. He left behind shares in Berry Holding Company ("BHC") that were subdivided into three groups. Bennett was the beneficiary of dividends paid out of one of these groups and, for...more

Cole Schotz

First Circuit Rejects “Special Circumstances” Exception To Numerosity Requirement Of Bankruptcy Code Section 303(B)(1)

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On April 24, 2019, the U.S. Court of Appeals for the First Circuit (the “First Circuit”) issued an opinion in the case of Popular Auto, Inc. v. Reyes-Colon (In re Reyes-Colon), Nos. 17-1971-72, 2019 WL 1785039 (1st Cir. Apr....more

A&O Shearman

(In)Eligible Filer: Bankruptcy Court Dismisses Involuntary Bankruptcy Filing Against Taberna for Failure of Non-Recourse Creditors...

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On November 8, 2018, the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) issued a decision dismissing an involuntary chapter 11 case filed against Taberna Preferred Funding IV,...more

Kramer Levin Naftalis & Frankel LLP

Court Holds that Holders of Nonrecourse Debt Do Not Have Standing to File Involuntary Bankruptcy Petition

The Bottom Line - The Bankruptcy Court for the Southern District of New York recently held in Taberna Preferred Funding IV, Ltd. v. Opportunities II Ltd. (In re Taberna Preferred Funding IV, Ltd.), No. 17-11628 (MKV),...more

Maynard Nexsen

Involuntary Bankruptcy: Creditor’s Tool to Be Used with Caution - CentsAbility: Creditors' Rights Law Update

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If you have ever been a creditor concerned about a debtor not paying debts as they become due or paying other creditors while ignoring your demands, then forcing the debtor into an involuntarily bankruptcy may be an option....more

Pullman & Comley, LLC

Bankruptcy Beat: Second Circuit Ruling Rejects Involuntary Bankruptcy Cases When Used for Debt Collection

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Imprisonment for debt has been abolished by all states, either by constitutional amendment, statute or common law, see Pease v. Charlotte Hungeford Hospital, 325 Conn. 363, 375-76 (2017); Note, “State Bans on Debtors' Prisons...more

Cole Schotz

Petitioning Creditors Beware: No Right To Setoff For Punitive Damages From Bad Faith Involuntary Bankruptcy Filings

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Creditors often think that an involuntary bankruptcy petition is a great bargaining chip when faced with a recalcitrant debtor. However, the actual filing of an involuntary bankruptcy petition (when that petition is filed in...more

Kramer Levin Naftalis & Frankel LLP

Nevada District Court Holds that a Creditor Must Have a Fully Undisputed Claim to Petition for an Involuntary Bankruptcy

The Nevada District Court recently held, in Mont. Dept. of Revenue v. Blixseth, No. 13-cv-01324-JAD, 2017 WL 6417632 (D. Nev. 15, 2017), that a creditor must have a fully undisputed claim to be a “qualified creditor” that may...more

Patterson Belknap Webb & Tyler LLP

Dispute Evolution: A bona fide dispute regarding claim amount may disqualify creditor from maintaining an involuntary case.

Section 303(b)(1) of the Bankruptcy Code generally requires three petitioning creditors to join an involuntary petition, each of which must hold claims against the debtor that are not contingent as to liability and are not...more

Dechert LLP

A Special Purpose CDO, an Involuntary Filing and a Single Lien Structure — Can an Investor “Create” an Unsecured Claim?

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The U.S. Bankruptcy Court for the Southern District of New York recently addressed whether secured noteholders against a CDO can waive their entitlement to a portion of the collateral securing all notes issued under an...more

Latham & Watkins LLP

SDNY Ruling Restricts Involuntary Bankruptcy Filings Against Chapter 15 Debtors

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Cross-border debtors gain another tool to use against dissident creditors seeking to disrupt foreign restructuring proceedings. Introduction - In In re Ocean Rig UDW Inc., et al., Case No. 17-10736, a creditor...more

Dechert LLP

Litigation Funder Communications Protected by the Attorney-Client Privilege and Work Product Doctrine

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Addressing a novel issue in In re: International Oil Trading Company, LLC, 548 B.R. 825 (Bankr. S.D. Fla. 2016), the United States Bankruptcy Court for the Southern District of Florida recently denied in part an involuntary...more

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