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Developments in Distressed Lending
Most participants in the distressed debt market for secured loans are familiar with the concept of adequate protection in bankruptcy. Typically, as part of a cash collateral order or an order approving a priming DIP loan, adequate protection is provided to secured lenders to protect against diminution in value of their security during a bankruptcy case. Although adequate protection often takes the form of replacement liens, superpriority claims, and payment of interest, fees, and expenses, the bankruptcy code allows it to take any form that results in the realization by secured lenders of the “indubitable equivalent” of their interest in collateral. 11 U.S.C. ' 361(3). Recently, in In re TOUSA Inc. (“TOUSA“) and In re Capmark Fin. Group Inc. (“Capmark“), secured lenders have received, as part of their adequate protection package, the right to obtain principal paydowns during a bankruptcy case.
Principal paydowns during a Chapter 11 case not only provide lenders with obvious benefit, but also could benefit debtors' estates by reducing interest expense in cases where secured creditors are oversecured. In such cases, pursuant to ' 506(b) of the bankruptcy code, the oversecured creditor would be entitled to receive postpetition interest at the applicable rate provided in the loan document through the effective date of the plan of reorganization, while debtors typically are required to hold their cash in bank accounts at approved financial institutions that have minimal risk and corresponding loan interest rates. 11 U.S.C. ' 345. The resulting negative interest spread, therefore, could be significant.
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.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
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.
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.
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."