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Kmart Bankruptcy: Lessons for Lessors and Secured Parties
One of the most fundamental and critical principles that enables the equipment leasing industry to function on a day-to-day basis is commercial certainty ' certainty in expectations regarding financing; certainty in the meaning of documentation; and reliance on the certainty of the application of legal principles that will be brought to bear in the event of a lease default or bankruptcy.
A currently pending proceeding in the massive Kmart bankruptcy challenges those underpinnings of certainty through the imaginative invocation of the 'equitable powers' of the Bankruptcy Court by a debtor-in-possession who may succeed in bringing about a result which is, by any standard, unfair, unanticipated and 'inequitable' ' at least in any commercial meaning of the word. [Note, On January 22, 2002, Kmart and its affiliate debtors filed a voluntary petition in the U.S. Bankruptcy Court for the Eastern District of Illinois seeking relief under Chapter 11 of Title 11 of U.S.C., 11 U.S.C. '' 101, et seq as amended. On January 24, 2003 Kmart filed its Joint Plan of Reorganization. The Plan was confirmed and Kmart emerged from Bankruptcy on May 5, 2003. Even though Kmart has emerged from Chapter 11, the Plan of Reorganization provided that if a motion for assumption was pending at the time of confirmation, that the Plan would not control, and the motions would.]
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.