Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.
On Feb 27, 2018, in Merit Management Group, LP v. FTI Consulting, Inc., 138 S. Ct. 883 (2018), the Supreme Court of the United States issued a decision holding that: 1) the only relevant transfer for purposes of analyzing whether the Bankruptcy Code section 546(e) “safe harbor” applies is the “overarching transfer” that the trustee is seeking to avoid (as opposed to the component transfers between mere intermediaries); and 2) under the facts presented, the relevant transfer between the debtor and transferee was not covered by the safe harbor because it was not “made by or to (or for the benefit of)” a “financial institution” or other covered entity. Merit Management Group, LP v. FTI Consulting, Inc., 138 S. Ct. 883 (2018), abrogating In re Quebecor World (USA) Inc., 719 F.3d 94 (2d Cir. 2013), In re QSI Holdings, Inc., 571 F.3d 545 (6th Cir. 2009), Contemporary Indus. Corp. v. Frost, 564 F.3d 981 (8th Cir. 2009), In re Resorts Int’l Inc., 181 F.3d 505 (3d Cir. 1999), In re Kaiser Steel Corp., 952 F.2d 1230 (10th Cir. 1991).
By Jacob H. Marshall and Randall Klein
As of Jan. 1, 2018, each jointly administered debtor with quarterly disbursements of at least $1,000,000 must pay a fee of 1% of all disbursements, up to $250,000 per quarter. Although this change in the law was only intended to address shortfalls in UST funding, it has taken a little-noticed component of bankruptcy and magnified it into a ticking tax-bomb for unsuspecting debtors and their lenders.
By Adam H. Friedman, Jonathan T. Koevary and Lauren B. Irby
In a case of first impression at the circuit level, the United States Court of Appeals for the Ninth Circuit held that section 1129(a)(10) of the Bankruptcy Code — which requires a favorable vote of at least one impaired class of creditors in order to confirm a Chapter 11 plan — applies on a “per-plan” basis, rather than a “per-debtor” basis.
By Daniel A. Lowenthal and J. Taylor Kirklin
Ultimately, Village at Lakeridge is noteworthy for what the Supreme Court did not decide. In granting certiorari, the Supreme Court declined to address whether the lower courts’ various “non-statutory insider” tests should be refined. As concurrences from Justices Sotomayor and Kennedy emphasized, though, that issue is ripe for increased scrutiny.
By Mark W. Page
The First Circuit Widens the Controversy
In In re Tempnology, the First Circuit held that the debtor’s rejection of a trademark license strips the nondebtor licensee of any right to continue to use the trademarks. In so doing, the court takes the same approach as the Fourth Circuit and rejects the approaches advocated by the Third and Seventh Circuits.