Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Features
In a decision of first impression, the U.S. Bankruptcy Court for the Northern District of Illinois imposed sanctions on a debtor’s counsel and his law firm for filing a brief that included fabricated citations to case law and nonexistent quotations that were generated by AI.
Features
A recent Third Circuit decision supports the general proposition that a bankruptcy proceeding cannot be used to revive foreclosure-related disputes that have been previously and conclusively resolved by a state court.
Features
The “risk management” aspect of LME focuses on the compensation to be paid to the participating lenders to provide new investment and the additional time or optionality gained for the equity sponsor. Frequently the LME is followed by a bankruptcy case in which the participating lenders again attempt to exercise control over the process and their compensation through a restructuring support agreement and a prepackaged Chapter 11 plan. At least one district court has concluded that compensation payable to a subset of lender/investors in a creditor class violates this requirement, derailing a confirmed prepackaged Chapter 11 plan and remanding to the bankruptcy court to remedy.
Features
Although alleged oversight claims are not uncommon, this case was unusual because the claims were not asserted derivatively by shareholders. Given the informational advantage enjoyed by the plan administrator, it was not surprising that the court found the complaint adequately pleaded Caremark claims against the named director defendants and two of the company’s officers.
Features
A timely and properly drafted “pre-negotiation agreement” should ensure that all discussions or draft agreements exchanged between the parties are neither enforceable prior to final execution of a settlement agreement nor admissible in any court proceeding.
