Features
The Chapter 9 Crucible
Any bankruptcy practitioner, upon first contact with a municipal bankruptcy case, may be shocked by the lack of substantive law to be found in Chapter 9. The dearth of detail has long caused bankruptcy lawyers and courts to turn to the far more substantive provisions of Chapter 11 for practical guidance.
Features
Court Rules That Professional Fees May Not Be Capped by Standard Carve-Out Provisions
Secured creditors and debtor-in-possession (DIP) lenders that rely on standard carve-out provisions to limit the impact of bankruptcy professional fees on their collateral would be well-advised to take notice of a U.S. Bankruptcy Court decision from earlier this year.
Features
Chapter 13<br><b><i><font="-1">Best Practices in Credit Reporting</b></i></font>
There is a new trend emerging in FCRA litigation involving Chapter 13 bankruptcy, under which debtors propose a repayment plan to make installment payments to creditors over three to five years. Increasingly, plaintiffs are filing suit based on certain credit-reporting actions taken (or not taken) during a pending Chapter 13 bankruptcy case, after plan confirmation but prior to the entry of the discharge — when a debtor has met all requirements set by the court.
Features
Application of Bankruptcy Law to Internet Assets
Internet assets generally, and Internet asset licenses in particular, are increasingly subject to bankruptcy proceedings.
Features
What Constitutes 'Proper' Notice?
Proper notice is a hallmark of all bankruptcy proceedings. If a creditor or party-in-interest has no notice of a particular matter, many courts have ruled that the creditor or party-in-interest will not be bound by a particular court's determination.
Features
Client Data in the Age of Digital Technologies and Cyber Warfare
Ubiquitous news of law firm data breaches, even among BigLaw, spotlights a treasure trove of trade secrets, confidential and strategic transactions, and sensitive client information. No wonder law firms are perceived to be attractive targets of cyber-attacks. Attractive? You can't help that. Easy? Not so fast.
Features
Second Circuit Reverses District Court in <i>Marblegate</i>, Making It Easier to Restructure Bonds Outside of a Chapter 11 Case
On Jan. 17, 2017, in a closely watched dispute, the Second Circuit issued its long-anticipated decision in <i>Marblegate Asset Management, LLC v. Education Management Finance Corp.</i>, construing Section 316(b) narrowly, holding that it only prohibits "non-consensual amendments to an indenture's core payment terms" and does not protect noteholders' practical ability to receive payment.
Features
The Intent of Section 546(e)
<b><i>Will Reversing a Transaction 'Seriously Upset The Securities Market' Ability to Function'?</b></i><p>On Dec. 1, 2016, Bankruptcy Judge Michael J. Kaplan, held that when a private company repurchases stock from a shareholder, and the payments were made "by" the company "to" the shareholder, through a bank, those payments are not protected by Bankruptcy Code § 546(e)'s safe harbor defense because its application "cannot be permitted to turn upon the use of a bank."
Features
Make-Whole Mayhem
<i><b>Uncertain Treatment of Make-Whole Premiums Upon Bankruptcy-Induced Acceleration and Redemption of Indentures</b></i><p>Recently, tempted by attractive interest rates, certain borrowers have sought to use the bankruptcy process to shield themselves from their obligations to pay make-whole premiums contemplated by their indenture documents. Although certain courts have allowed crafty borrowers to shed unwanted make-whole obligations through the bankruptcy process, other courts refuse to sanction such manipulation.
Features
Split Ninth Circuit Requires Default Interest To Cure Default
A Chapter 11 debtor "cannot nullify a preexisting obligation in a loan agreement to pay post-default interest solely by proposing a cure," held a split panel of the U.S. Court of Appeals for the Ninth Circuit on Nov. 4, 2016.
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