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'Vessel Financing': Section 1110 Cast Adrift
Section 1110 of the Bankruptcy Code, 11 U.S.C. ' 1110, provides a special exemption from the automatic stay provisions of the Code, permitting a lessor to take possession of certain equipment 60 days after the lessee files for bankruptcy. This obtains unless the lessee's trustee performs the lessee's obligations, and cures all pre-bankruptcy defaults within the 60-day period. Lessors of aircraft are familiar with the myriad cases that have interpreted the application of Section 1110 to such equipment (see Section 1110(a)(3)(A)(i)).
But what about the application of Section 1110 to vessels? Section 1110(a)(3)(A)(ii) provides a special exemption from the automatic stay provisions of the Bankruptcy Code for a 'documented vessel (as defined in Section 30101(1) of Title 46) that is subject to a security interest granted by, leased to, or conditionally sold to a debtor that is a water carrier that, at the time such transaction is entered into, holds a certificate of public convenience and necessity or permit issued by the Department of Transportation.' This provision of Section 1110, applicable to vessels, sounds reasonably comparable to the provisions relating to aircraft and rail equipment. However, the seeming analog to aircraft is illusory, and no cases have made themselves readily apparent applying Section 1110 to vessels. This situation may well exist because no U.S. flag commercial vessel holds a 'certificate of public convenience and necessity or permit,' a prerequisite to the applicability of Section 1110(a)(3)(A)(ii).
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
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.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.