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'Use Clauses' and the Bankruptcy Code: A Cautionary Tale
The recent Chapter 11 bankruptcy of Trak Auto Corporation (“Trak Auto”), the retail auto parts chain, has yielded a reported decision of the U.S. Fourth Circuit Court of Appeals that offers some insights for landlords on how “use clauses” in leases will be put under the bankruptcy microscope. In re Trak Auto Corporation, 42 B.R. 255 (4th Cir. 2004).
Trak Auto filed its Chapter 11 petition on July 5, 2001 and had once operated 196 retail auto parts stores. Trak Auto sought to assume and assign certain of its leases, including one known as the West Town Lease in Chicago. The West Town Lease contained explicit use restrictions. Section 1.1(L) of the lease limited the use to “the sale at retail of automobile parts and accessories and such other items as are normally sold by tenant in its Trak Auto stores.” In Section 8.1 of the lease, Trak Auto covenanted to use the leased premises “only as a Trak Auto store” and for the uses provided for in Section 1.1(L).
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
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.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.