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Holders of Unredeemed Gift Cards Denied Bankpruptcy Priority
For some time now, the brick and mortar side of the retail industry has been in financial distress. In 2015 and 2016 alone, brand-name companies such as Sports Authority, RadioShack, Aéropostale, American Apparel, Eastern Mountain Sports and City Sports sought bankruptcy protection. A common question in these cases is how to treat holders of unredeemed gift cards. Are they near the back of the line with other general unsecured creditors, or are they entitled to “priority” payment status under the Bankruptcy Code? The Delaware Bankruptcy Court recently revisited this issue in In re City Sports, No. 15-12054, 2016 U.S. Dist. LEXIS 2884 (Bankr. D. Del. Aug. 4), and concluded that holders of unredeemed gift cards from now-defunct retailer City Sports were nothing more than general unsecured creditors.
The City Sports decision is significant not only because of its potential applicability to the wave of retail companies in or on the verge of bankruptcy, but also because it reaches a conclusion different from one issued in a 2004 decision from the same court, In re WW Warehouse, 313 B.R. 588, 592 (Bankr. D. Del. 2004).
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.
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.
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.