Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Courts Issue Bearish Chapter 15 Rulings in Bear Stearns Cases
The subprime mortgage crisis and the high-profile meltdown of two Bear Stearns investment funds have generated the highest profile Chapter 15 rulings since its enactment in 2005. The rulings were issued in the cases commenced by funds (the 'Bear Funds') that were organized under Cayman law, commenced Cayman insolvency proceedings and then sought Chapter 15 assistance from the U.S. Bankruptcy Court for the Southern District of New York. The Bankruptcy Court, and recently the District Court on appeal, held that the Bear Funds were not eligible for any Chapter 15 relief because they did not have a sufficient Cayman presence to qualify for that relief.
Finding the Bear Funds entirely ineligible under Chapter 15 was a surprising result with potentially profound implications for other troubled hedge funds in need of insolvency law protection. As discussed further below, the rulings seriously undermine Chapter 15 as a viable option for hedge funds organized outside of the United States but whose primary operations and assets are located in the United States.
As a result, rather than fostering cooperation in the cross-border insolvency context, the rulings may force such funds to file full-blown Chapter 11 or Chapter 7 proceedings in the United States in addition to the insolvency proceedings that they may be required to file in their home jurisdictions. This is not how Chapter 15 was intended to work and we suggest that further appellate review or Congressional clarification may be appropriate.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.