News & Analysis as of

Reversal Loans

Seward & Kissel LLP

Fifth Circuit Reverses Bankruptcy Court’s Ruling on Lenders’ Sacred Right of Pro Rata Repayment in Uptiering Transaction

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On December 31, 2024, the Fifth Circuit Court of Appeals overturned the Bankruptcy Court for the Southern District of Texas’ (the “Bankruptcy Court”) decision that the exchange by certain lenders of Serta Simmons Bedding, LLC...more

King & Spalding

New York Appellate Court Blocks Mezzanine Borrower’s Claim Against Lender for Breach of Implied Covenant of Good Faith and Fair...

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On October 5, 2023, the First Department of New York’s Appellate Division limited the ability of borrowers to use a claim for breach of the implied covenant of good faith and fair dealing as a club to prevent lenders from...more

King & Spalding

Ninth Circuit Addresses Issue of First Impression Concerning the Usury Defense Under California Law

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On May 25, 2023, the U.S. Court of Appeals for the Ninth Circuit, in a two-to-one split decision, held that an exemption to California’s usury laws for certain “aggregate” loan amounts applies only to indebtedness of a single...more

Patton Sullivan Brodehl LLP

Alter Ego Liability for LLC Managers: the Facts Matter

Alter ego liability is a frequent topic covered in The LLC Jungle — see here for a list of all prior “alter ego” related posts. The alter ego doctrine allows a court to disregard a corporate entity (including LLCs) and...more

King & Spalding

Second Circuit Reverses Judgment for Revlon Lenders Mistakenly Paid $500 Million by Citibank

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On September 8, 2022, the U.S. Court of Appeals for the Second Circuit reversed a judgment entered for a group of lenders (or their representatives) of cosmetics company Revlon, Inc. in a case over entitlement to $500 million...more

Goodwin

Delaware Court of Chancery Allows Stockholder Litigation to Proceed Against Viacom-CBS Over $30B Merger

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Delaware Court of Chancery Allows Stockholder Litigation to Proceed Against Viacom-CBS Over $30B Merger; Ninth Circuit Affirms Dismissal with Prejudice of Securities Class Action Against Tesla; Second Circuit Affirms...more

Snell & Wilmer

Not so Fast! How Does Revoking Acceleration of a Note Impact the Statute of Limitations?

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Lenders routinely accelerate notes after a default occurs, calling the entire loan due immediately. Less regularly, a lender may change its mind and unilaterally revoke the acceleration. Rarely, however, does a lender fail to...more

Jones Day

In Brief: Court Rules Against Lyondell Litigation Trustee on LBO Fraudulent Conveyance Claims

Jones Day on

In Weisfelner v. Blavatnik (In re Lyondell Chemical Company), 2017 BL 131876 (Bankr. S.D.N.Y. Apr. 21, 2017), the bankruptcy court presiding over the chapter 11 case of Lyondell Chemical Company ("Lyondell") handed down a...more

Polsinelli

Second Circuit Finds Special Servicer's Repurchase Claim Barred by Statute of Limitations, POLSINELLI'S Loan Originator Client...

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The Second Circuit recently REVERSED a S.D.N.Y decision granting summary judgment in favor of a CMBS Trust whose Special Servicer sued POLSINELLI'S commercial loan Originator client seeking repurchase of a loan due to the...more

McDonnell Boehnen Hulbert & Berghoff LLP

LendingTree, LLC v. Zillow, Inc. (Fed. Cir. 2016) - Claims of Another "Loan Application" Patent Invalidated under Section 101

In a nonprecedential opinion issued earlier today, the Federal Circuit invalidated claims under 35 U.S.C. § 101 that had survived the District Court in LendingTree, LLC, v. Zillow, Inc., Nextag, Inc., & Adchemy, Inc. This...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week in Review

EBA Updates Single Rulebook Q&As - On October 16, 2015, the European Banking Authority (EBA) updated its Q&As on the single rulebook, publishing four new questions. The single rulebook Q&As relate to the CRD IV package...more

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