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Employee Claims in Bankruptcy Pose Significant Liability Exposure Image

Employee Claims in Bankruptcy Pose Significant Liability Exposure

Shane G. Ramsey & David M. Barnes, Jr.

<b><i>Lessons Learned From </i>In re FPMI Solutions Inc.</b><p>There are litanies of potential pitfalls for companies that file for bankruptcy without strictly following the requirements of federal or state employment laws. This article discusses the requirements and how to meet them.

Features

Employee Claims in Bankruptcy Pose Significant Liability Exposure Image

Employee Claims in Bankruptcy Pose Significant Liability Exposure

Shane G. Ramsey & David M. Barnes, Jr.

When a corporation determines to file for Chapter 11 protection, questions concerning the status of existing labor and employment agreements and viability of employee claims immediately arise. Indeed, there are litanies of potential pitfalls for companies that file for bankruptcy without strictly following the requirements of federal or state employment laws.

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When 'Bankruptcy Remote' Meets Public Policy Image

When 'Bankruptcy Remote' Meets Public Policy

Pamela J. Martinson

<b><i>Serving Two Masters</i></b><p>This article examines two recent cases, and suggests practices that lenders to BREs can use to reduce the risk of a debtor bankruptcy without compromising the policies underlying bankruptcy and corporate laws.

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Substantive Non-Consolidation Opinion Letters: Advice for Bankruptcy Counsel Image

Substantive Non-Consolidation Opinion Letters: Advice for Bankruptcy Counsel

Paul A. Rubin & Hanh V. Huynh

Substantive non-consolidation opinion letters have long been a regular "check-the-box" item in large commercial real estate transactions. While substantive consolidation jurisprudence has not changed materially over the past decade, these opinion letters should not be treated lightly by borrowers or their counsel.

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Second Circuit Directs Consideration of an 'Efficient Market' Interest Rate for <b><i>Momentive</i></b> Cramdown Plan Image

Second Circuit Directs Consideration of an 'Efficient Market' Interest Rate for <b><i>Momentive</i></b> Cramdown Plan

Robert W. Dremluk

On Oct. 20, 2017, the U.S. Court of Appeals for the Second Circuit, in Momentive Performance Materials, Inc. v. BOKF, NA (In re MPM Silicones, L.L.C. "MPM")…

Features

Employee Claims in Bankruptcy Pose Significant Liability Exposure Image

Employee Claims in Bankruptcy Pose Significant Liability Exposure

Shane G. Ramsey & David M. Barnes, Jr.

<b><i>Lessons Learned From In Re FPMI Solutions Inc.</i></b><p>When a corporation determines to file for Chapter 11 protection, questions concerning the status of existing labor and employment agreements and viability of employee claims immediately arise. Indeed, there are litanies of potential pitfalls for companies that file for bankruptcy without strictly following the requirements of federal or state employment laws.

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Third-Party Litigation Funding Image

Third-Party Litigation Funding

Jonathan Friedland & Elizabeth Vandesteeg

<b><i>A New Option for Resource-Strapped Bankruptcy Estates</i></b><p>Despite third-party litigation funding's explosive growth, corporate restructuring/insolvency practitioners in the U.S. are not yet frequent participants in such arrangements. Yet litigation funding could be especially beneficial to provide a new source of capital for otherwise asset-starved estates.

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Third Circuit Defines 'Received' for Section 503 (B)(9) Claims Image

Third Circuit Defines 'Received' for Section 503 (B)(9) Claims

Anthony Michael Sabino

For over a decade now, the Bankruptcy Code has granted a priority of payment with regard to creditor claims for goods received by the debtor in the 20 days before bankruptcy. A creditor merely needs to demonstrate that the debtor "received" the goods within the prescribed pre-bankruptcy interval, and its claim attains priority as an administrative expense. Ah, but therein lies the rub.

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Validity of an Avoidance Claim Sale Image

Validity of an Avoidance Claim Sale

Michael L. Cook

<b><i>Third Circuit Sidesteps Ruling</i></b><p>The Third Circuit recently dismissed an appeal from "the sale of legal claims" as "statutorily moot" under Bankruptcy Code § 363(m) because the appellants "had not obtained a stay" of the effectiveness of the sale order pending appeal. Here's why this ruling is so important.

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