• Features

    Make-Whole Mayhem

    Jeffrey R. Gleit and Nathaniel R.B. Koslof

    Uncertain Treatment of Make-Whole Premiums Upon Bankruptcy-Induced Acceleration and Redemption of Indentures

    Recently, tempted by attractive interest rates, certain borrowers have sought to use the bankruptcy process to shield themselves from their obligations to pay make-whole premiums contemplated by their indenture documents. Although certain courts have allowed crafty borrowers to shed unwanted make-whole obligations through the bankruptcy process, other courts refuse to sanction such manipulation.

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  • Features

    Split Ninth Circuit Requires Default Interest To Cure Default

    Michael L. Cook

    A Chapter 11 debtor "cannot nullify a preexisting obligation in a loan agreement to pay post-default interest solely by proposing a cure," held a split panel of the U.S. Court of Appeals for the Ninth Circuit on Nov. 4, 2016.

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  • Features

    Post-Confirmation Jurisdictional Shrinkage

    John H. Drucker, Mark Tsukerman and Myles R. MacDonald

    Although Congress has not expressly addressed when and under what circumstances bankruptcy jurisdiction ends, most courts agree that a bankruptcy court's jurisdiction "shrinks" after confirmation of a plan. This article discusses the factors that courts take into consideration in determining the extent of the post-confirmation jurisdictional shrinkage.

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  • Features

    The Intent of Section 546(e)

    Sheryl P. Giugliano

    Will Reversing a Transaction ‘Seriously Upset The Securities Market’ Ability to Function’?

    On Dec. 1, 2016, Bankruptcy Judge Michael J. Kaplan, held that when a private company repurchases stock from a shareholder, and the payments were made "by" the company "to" the shareholder, through a bank, those payments are not protected by Bankruptcy Code § 546(e)'s safe harbor defense because its application "cannot be permitted to turn upon the use of a bank."

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