The Queen Is Dead, Long Live the Queen?
November 01, 2016
The automatic stay of 11 U.S.C. § 362 is one of the most important principles of bankruptcy law. It provides crucial breathing space for the debtor to reorganize or liquidate, and avoids the piecemeal dismemberment of the estate's assets. However, in rare instances, courts have extended stay protection to non-debtors through 11 USC § 105. This is considered extraordinary relief reserved for unusual circumstances, and may be analogized to the inherent power of federal courts under their general equity powers.
Holders of Unredeemed Gift Cards Denied Bankpruptcy Priority
November 01, 2016
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?
On the Move
November 01, 2016
Burr & Forman LLP has opened an office in Wilmington, DE. Rick Robinson, who is joining the firm as a partner in the firm's Creditors' Rights and…
<b><i>Millennium Lab</i></b>
October 14, 2016
Prepetition, Millennium Lab Holdings II, LLC, Millennium Health, LLC, and RxAnte, LLC reached a settlement with various government entities relating to, among other things, claims against the Debtors for violations of the Stark law, Anti-Kickback Statute and FCA. Here's a discussion of this pivotal case.
Bankruptcy Code, International Trade Treaty Collide over Expense Status
October 14, 2016
It is inevitable that the Bankruptcy Code will sometimes intersect with international trade law, as it has done for decades with domestic commercial law. Those three domains recently came together in the context of a creditor's Section 503(b)(9) administrative expense claim, and a federal district court was called upon to sort out which body of law took precedence.
Board of Editors
October 06, 2016
Accounting and Financial Planning for Law Firms
Lawrence L. Bell
Advisors, LLC, Kensington, MD
Wayne Berkowitz
Berdon LLP, New York
James…
The Troubled Energy and Production (Oil and Gas) Sector
September 01, 2016
The oil and gas exploration sector in North America has been crushed by high debt, globally low oil prices and regional overcapacity. The result: Over 100 oil and gas exploration and production companies have filed for bankruptcy over the past 18 months, and dozens more are expected to follow.
Should You Reconsider Your Bankruptcy Remoteness Strategy?
September 01, 2016
Two recent bankruptcy court decisions have highlighted certain weaknesses regarding bankruptcy remoteness ' a concept that typically arises in the context of structured finance and asset securitization transactions.
The Article 8 Opt In
September 01, 2016
When a lender provides financing to a commercial borrower, it typically requires the borrower to grant a security interest in some or all of the borrower's assets. Among many other types of assets or collateral, a borrower may be required to grant a security interest in stock or membership interests owned by the borrower, including stock or membership interests in the borrower's subsidiaries or affiliates.
