Bankruptcy

The trilogy of Prince Global decisions provide a useful roadmap for cross-border practitioners exploring recognition under Chapter 15 in the U.S., as well as the key strategic tools and other considerations that are involved.

Delaware recently became the sixth state to enact the Uniform Act, with minor modifications (the Delaware Act). Part One of this article included background regarding assignments for the benefit of creditors, including historical shortcomings that the Uniform Act is intended to address. Part Two discusses the Uniform and Delaware Acts in more detail, including the uniformity, clarity, flexibility, and efficiency provided by the Uniform Act, and the specific refinements incorporated into the Delaware Act.

A New York bankruptcy judge has established a first-of-its-kind framework for valuing cryptocurrency in Celsius Network avoidance actions, a ruling that White & Case says will guide nearly 1,000 pending cases and hundreds of defaults.

In re Moche reinforces how bankruptcy courts and matrimonial courts can work in tandem and harness the specialized expertise of both tribunals. While bankruptcy courts have exclusive jurisdiction to control the disposition of assets, the threshold issue of marital property rights is a matter that comes within the unique expertise of the matrimonial court. That determination in the matrimonial court ultimately impacts what steps may occur in the bankruptcy court proceedings.

Delaware recently became the sixth state to enact the Uniform Law Commission’s Uniform Act, with minor modifications (the Delaware Act). This two-part article describes the innovations, certainty and paradigm provided by the Uniform Act and Delaware’s revisions to the Uniform Act. Part One includes background regarding assignments for the benefit of creditors, including historical shortcomings that the Uniform Act is intended to address.

In a recent case, a Chapter 11 debtor sought to employ an accounting firm under section 327(a), the principal of which was the first cousin of the owner of the debtor corporation. The U.S. Trustee objected to the retention, arguing that the debtor’s cousin was an insider. But the bankruptcy judge disagreed.

As the costs of U.S. bankruptcy cases have increased, and relief such as obtaining nonconsensual third-party releases has been limited by court rulings, restructuring specialists have begun to look to foreign restructurings’ use of Chapter 15 as an ancillary proceeding to implement certain corporate restructurings.

In the case of In re Black Diamond Energy of Delaware, the U.S. District Court for the Western District of Pennsylvania provided insight regarding the “police and regulatory power” exception to the automatic stay set forth in 11 U.S.C. Section 362(b)(4).