News & Analysis as of

Secured Debt

Ervin Cohen & Jessup LLP

Can You Collaterally Attack a Receiver’s Appointment?

Q: I am a receiver for a partnership. I was appointed pursuant to a stipulation between the current partners and a secured creditor. After an extensive investigation, I have sued the former managing partner and her mother to...more

Womble Bond Dickinson

Essential Strategies for Managing Maturing CRE Loans in Today's Market

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The commercial real estate industry is facing an impending tsunami of $2 trillion in debt maturities, with an estimated $929 billion coming due this year. If you will be caught in this net because the loan secured by your CRE...more

Holland & Knight LLP

Making Lemonade from Lemons: A Mortgage Lender's Guide to Successful Loan Workouts, Part 2

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If you are a mortgage lender who followed the recommendations in the first article in this series, then you should have a solid grasp of your mortgage portfolio. You have identified the relevant players and their respective...more

Lerman Senter PLLC

FCC Issues $1.8 Million Penalty Against Nexstar and Mission; Orders Station Divestiture

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The FCC has fined Nexstar Media Group, Inc. and Mission Broadcasting, Inc. $1.8 million after finding Nexstar exercised de facto control over Mission’s Station WPIX (TV) in New York without FCC consent. The FCC also found...more

Latham & Watkins LLP

Lexology In-Depth - Acquisition And Leveraged Finance

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It was a muted start to the year for the acquisition and leveraged finance market due to a challenging macroeconomic climate. Interest rate hikes at one of the fastest paces on record, surging inflation (particularly in...more

Womble Bond Dickinson

Debt Purchase Transactions: Beware of the Risks

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CRE Secured Debt Purchase Transactions present unique risks that should be understood and carefully managed.  Current market conditions may present unprecedented opportunities to purchase debt secured by distressed...more

Seward & Kissel LLP

Supreme Question, Truck Pickup, and Core Workout

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US Supreme Court torn over Purdue bankruptcy suit| Reuters - On Monday, U.S. Supreme Court justices grappled with whether to affirm OxyContin producer Purdue Pharma’s bankruptcy plan. S&K Take: Really couldn’t lead...more

Tonkon Torp LLP

Uncertainty in Oregon for Crypto Assets Under Commercial Law

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While some states have moved to adopt model Uniform Commercial Code (UCC) provisions to provide a clear legal framework for commercial and secured transactions involving crypto assets, Oregon has yet to take action. This is a...more

ArentFox Schiff

Avoiding Collateral Damage: Lessons of Lehman [Part II]

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In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks to (i) develop...more

Kramer Levin Naftalis & Frankel LLP

New York Bankruptcy Court Raises the Cost of Keeping Funded Debt: Debtor Needs to Pay Default Interest Rate in Reinstatement of...

What Happened? One fundamental question in any restructuring relates to the treatment of funded debt obligations, like mortgages. When the cost of prepetition debt is higher than the prevailing market rates, a debtor may...more

Latham & Watkins LLP

2nd Circuit Ruling Is Good For Syndicated Lending Stability

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On Aug. 24, the U.S. Court of Appeals for the Second Circuit issued its highly anticipated decision in the case of Kirschner v. J.P. Morgan Chase Bank NA. The three-judge panel unanimously upheld the district court's...more

Goodwin

Till We Meet Again: Eighth Circuit Weighs in on Appropriate Interest Rate in a Cramdown

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Much has been written about how to calculate the appropriate interest rate for the deferred cash payments a debtor may propose to pay to a rejecting secured creditor under a “cramdown” Chapter 11 plan to meet the “fair and...more

BCLP

Crisis Averted: Second Circuit Rejects Effort to Recast Secured Loans as Securities

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On August 24, 2023, the Second Circuit prevented turmoil in the commercial lending market, ruling in Kirschner v. JP Morgan Chase Bank, N.A. (JPM), et al. that syndicated secured term loan notes were not securities for...more

Troutman Pepper

Who Is the Claims Agent and What Type of Information Can I Obtain on Their Website? - Creditor’s Rights Toolkit

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Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy. A claims agent is a third party retained by the debtor to take on...more

Troutman Pepper

Washington Becomes Latest State to Decide Bankruptcy Impact on Debt Collection Statute of Limitations

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In April, we discussed how Colorado’s state supreme court issued its highly anticipated decision confirming a borrower’s bankruptcy discharge does not accelerate secured installment debt or trigger the final statute of...more

Rivkin Radler LLP

Debt or Equity? The Never-Ending Question For Closely Held Businesses

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What Was Intended? Transactions between commonly controlled, closely held businesses are often conducted in an informal manner. This is unfortunate because, in the absence of documentation, it is sometimes difficult to...more

Latham & Watkins LLP

Hong Kong Airlines - A Restructuring Unparalleled

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A novel debt restructuring plan will allow the carrier to recover following pandemic turbulence. In December 2022, Hong Kong Airlines’ Hong Kong scheme and English restructuring plan were sanctioned by the respective...more

Latham & Watkins LLP

Release Me From My Bands Or Else My Project Fails Third Party Releases in Schemes

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Third-Party Releases are common in English law schemes of arrangement and restructuring plans, and US courts have so far indulged that approach in granting recognition. If Prospero’s plea to the audience at the...more

Seward & Kissel LLP

Cooking up a Bankruptcy, Best Laid Plans in Celsius, DOJ Backs Off, Aearo Appeal, Bed (Blood) Bath

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Instant Brands, maker of Instant Pot and Pyrex, files for bankruptcy | CNN - Instant Brands, the parent company of many popular kitchen products, filed for Chapter 11 bankruptcy this week. Instant Brands produces Instant...more

Cadwalader, Wickersham & Taft LLP

How to Prepare for a Real Estate Enforcement in Europe, Part 2 – The Importance of Valuation in Enforcements

Former British Prime Minister Tony Blair once famously declared that “our top priority was, is and always will be education, education, education.” To adopt this mantra in an enforcement context, for lenders the top priority...more

Nelson Mullins Riley & Scarborough LLP

Bankruptcy 101: Claims: Types and Priorities

Bankruptcy Basics for New and Non-Bankruptcy Attorneys - This entry is part of Nelson Mullins’s ongoing “Bankruptcy Basics” blog series that is intended to address foundational aspects of bankruptcy for new and...more

Freeman Law

Bankruptcy Schedules: Schedule D

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Continuing on with our series on Bankruptcy Schedules, today we’ll look at Schedule D, which is used to list all of the secured debts that you owe as of the date that you filed for bankruptcy.  Secured debts are those that...more

Husch Blackwell LLP

Georgia Introduces New Disclosure Requirements for Commercial Finance Providers

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There is a trend among state legislatures to regulate commercial finance more tightly, including federal Truth in Lending Act (TILA)-style disclosure requirements more typically seen in the consumer lending context. Now,...more

Eversheds Sutherland (US) LLP

Whose right is it? Impact of bankruptcy on lender's prepetition exercise of proxy rights

In In re CII Parent, Inc., the Bankruptcy Court for the District of Delaware affirmed a secured lender’s prepetition exercise of its proxy rights and its subsequent removal and replacement of the directors/managers of the...more

Nelson Mullins Riley & Scarborough LLP

Fifth Circuit Holds that Section 363(m)’s “Good Faith Purchaser” Protection Applies to Secured Creditor that Used “Economic...

On April 17, 2023, the Fifth Circuit Court of Appeals, in Matter of RE Palm Springs II, L.L.C., 2023 WL 2966520 (5th Cir. April 17, 2023), held that a senior lender who uses economic leverage and asserts its legal rights to...more

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