Seventh Circuit Voids Lien-Securing Rescue Loan
April 01, 2016
A "bank [making a secured rescue loan] had information that should have created the requisite suspicion ' to conduct a diligent search for possible dirt" ' <I>i.e.</I>, whether the debtor had the right to pledge $312 million of customer securities, held the U.S. Court of Appeals for the Seventh Circuit on Jan. 8, 2016.
Valuing Bids in Bankruptcy Auctions
February 29, 2016
Bids in bankruptcy auctions can be divided into two broad categories: all-cash bids; and non-cash and credit bids. This article discusses some important issues raised by non-cash bids.
Bankruptcy Code Section 1113 Trumps NLRA
February 29, 2016
A significant problem confronting many debtors seeking to reorganize through Chapter 11 involves the resolution of labor contract issues. A recent decision from the U.S. Court of Appeals for the Third Circuit will likely impact how that problem is solved by debtors teetering on the brink of, or already in, Chapter 11 where their operative collective bargaining agreement has or soon will expire.
Structured Dismissals and Application of Non-Estate Proceeds
February 29, 2016
One of the more significant changes to Chapter 11 practice has been the use of section 363 to sell the assets of a debtor, prior to confirmation of a plan, as a means to restructure and maximize value. This transactional use of the Bankruptcy Code has, by necessity, changed how cases are administered.
When Is Mediation Appropriate Pursuant to Bankruptcy Code Section 327(a)?
January 31, 2016
With the utilization of mediation as a dispute resolution tool in bankruptcy cases becoming increasingly common, it is important that courts remain vigilant in protecting the integrity of the mediation process. As the Second Circuit once famously stated in another context, "[t]he conduct of bankruptcy proceedings not only should be right but must seem right."
'Watch Your Attitude, Petitioning Creditors!'
January 31, 2016
The Bankruptcy Code contains relatively clear and straightforward requirements and standards regarding the eligibility of creditors to file an involuntary bankruptcy petition against a debtor. If such criteria are met, do the creditors' intentions, which are not specifically referenced in this context in the statutory framework, come into play at all?
A Cure By Any Other Name
January 31, 2016
Section 1123 (a)(5)(G) of the Bankruptcy Code provides that, "[n]otwithstanding any otherwise applicable nonbankruptcy law, a plan shall ' provide adequate means for the plan's implementation, such as ' curing or waiving of any default." But what, exactly, does it mean to cure a default?
Update on Bankruptcy Fee Shifting
December 31, 2015
Professional fees are always important to clients and lawyers in bankruptcy cases. As the recent decisions discussed in this article show, the fee-shifting debate is still alive.
Marijuana and Bankruptcy? Not Really
December 31, 2015
Like many others, parties engaged in or deriving income from the legal commercialization of medical marijuana, either directly or through another party are not immune to financial distress, and sometimes, seeking bankruptcy relief may be strategic or necessary. Unfortunately, Marijuana-Related Parties have found elusive the protections and benefits under the Bankruptcy Code.
