A New Model for Auto Supplier DIP Financing?
November 29, 2005
Without any reservation, it is safe to say that insolvency crisis facing the U.S. auto industry ' from myriad Tier 2 suppliers right up to the legacy-burdened OEMs ' has become the cause c'l'bre of the professional restructuring community, and for objectively good reason. In this year alone, at least eight parts makers (among them, Collins & Aikman Corp., Meridian Automotive Systems, Inc., Tower Automotive, Inc., Jernberg Industries, Inc., Harvard Industries, Inc., Jacobs Industries, Inc., and Delphi Corp.) filed for Chapter 11 relief. And many industry experts believe that these cases represent merely a harbinger of even bigger things to come.
Disallowance and Subordination of Transferred Claims
November 29, 2005
Bankruptcy claims traders are currently on the lookout for a decision from the Enron bankruptcy court that could add significant uncertainty to distressed debt markets. The court has under advisement the issue of whether claims sold post-petition are subject to disallowance under ' 502(d) or equitable subordination as a result of pre-petition conduct or receipt of avoidable transfers by the transferor.
Courts Grapple with SOX Whistleblower Protections
November 29, 2005
Courts and administrative law judges have begun grappling with issues concerning the scope of SOX's whistleblower provisions in two types of situations that any U.S.-based multinational corporation might encounter: 1) where the whistleblower is located and the whistleblowing occurred outside the U.S., and 2) where the whistleblower's employer is a nonpublic subsidiary of a publicly traded company.
FLSA: New Supreme Court Ruling
November 29, 2005
In its first employment-related decision of this term, the U.S. Supreme Court held in <i>IBP, Inc. v. Alvarez</i> that the time food-processing workers spend walking between changing and production areas is compensable under the Fair Labor Standards Act (FLSA), as amended by the Portal-to-Portal Act. <i>IBP, Inc. v. Alvarez</i>, 2005 WL 2978311 (U.S., Nov. 8). The Court's ruling disposed of appeals from both the Ninth and First Circuits, and resolves a split among the circuit courts.
Will Health Savings Accounts Solve the Health Care Crisis?
November 29, 2005
Perhaps the fastest growing new form of employee benefit arrangements, Health Savings Accounts (HSAs) are an alternative hybrid structure of health coverage. The HSA is a two part arrangement in which participants belong to a health care plan with a high annual deductible that provides insurance coverage for expensive health care procedures and preventative care. The objective of the HSA is to allow eligible individuals who participate in High Deductible Health Plans to contribute to a tax-advantaged savings account on an annual basis an amount equal to their annual deductible, that may be carried over from year to year to cover qualified medical expenses. Contributions to an HSA from employers or individuals are generally tax deductible. In the same way, distributions from an HSA are not included in ordinary income if the amounts are used for reasonable medical expenses. Contributions on behalf of an employee are immediately vested and the HSA program is designed to be portable.
Landmark Same-Sex Union Case Overturned By New York Appellate Court
November 29, 2005
The courts of New York dealt a blow to the cause of same-sex partners' family rights in October when the Appellate Division, Second Department, reversed the Nassau County Supreme Court's denial of a motion to dismiss a wrongful death suit brought against a hospital by the surviving member of a couple legally joined in a Vermont civil union ceremony.
WA Supreme Court Recognizes Non-Biological Lesbian Mother
November 29, 2005
The Washington Supreme Court ruled on Nov. 3, 2005 that a lesbian co-parent who can establish that she is a de facto parent will have all the same rights and responsibilities of other parents, including the right to seek custody or visitation. The court's ruling was 7-2.
News Briefs
November 29, 2005
News of importance to you and your practice.
