District Court Affirms Cramdown Interest Rate Calculation in <i>Momentive </i>
September 02, 2015
On May 5, 2015, United States District Judge Vincent L. Bricetti affirmed the confirmation order issued by United States Bankruptcy Judge Robert D. Drain in the MPM Silicones LLC ( Momentive ) Chapter 11 cases. We discussed the facts and analyzed Judge Drain's ruling with respect to the applicable cramdown interest rate to be applied to secured claims under section 1129(b)(2)(A)(i) of the Bankruptcy Code in a prior article ( see "Cramdown Interest Rates in Chapter 11," Equipment Leasing Newsletter , March 2015, http: //bit.ly/1Jr81HU). On appeal, the senior lien appellants argued that the plan of reorganization confirmed by Judge Drain violated section 1129(b) by using a "formula approach" to calculate the cramdown interest rate, and, in the alternative, by calculating the cramdown interest rate under the formula approach incorrectly.
On the Modern American Class Action
September 02, 2015
This article examines what the author calls the present scourge of food litigation being driven by class-action attorneys on the theory that a regulatory violation of any magnitude amounts to an unfair or deceptive trade practice under state consumer protection statutes.
Social Media Policies For Employees in the Educational Setting
September 02, 2015
As a new school year begins, the use of social media is more prevalent in the classroom than ever. And while many school districts have adopted social media policies relating to the regulation of its students' actions, many have not implemented similar policies with respect to its employees, including teachers and other staff.
Ashley Madison Data Breach Sparks Suits
September 02, 2015
Infidelity website AshleyMadison.com and its parent company Avid Life Media Inc. have been hit with a pair of class actions in Los Angeles federal court stemming from the site's recent data breach.
Are You Following ALTA Best Practices?
September 02, 2015
The American Land Title Association (ALTA) recently announced it has expanded the availability of its Best Practices Framework resources to non-members. Title agencies can use the framework to demonstrate compliance to lenders, who need to meet regulatory requirements regarding oversight of their third-party service providers. Law firms that have a title agency and those that are considering adding one in the future should be aware of ALTA Best Practices.
MT Court: Companies Must Show Prejudice to Avoid Coverage Based on Late Notice
September 02, 2015
Last month, we discussed the fact that in two recent decisions, the Montana Supreme Court held that an insurance company seeking to deny coverage on the grounds of a policyholder's untimely notice must establish that it was prejudiced by the timing of notice. The discussion concludes with a look at other states.
Creating a Competitive Situation
September 02, 2015
When it comes to the business processes that legal organizations should be improving immediately for long term success, back office support and the recovery of those costs tops the list. With the pressure on rates and cost recovery not abating, it is critical that firms develop a strategic plan to decrease and control their support costs and recover them in a fair and transparent manner. This will help firms maintain competitive rates as well as operate more efficiently and profitably.
Advanced Payments Denied Priority
September 02, 2015
Advancement claims of executives are not entitled to priority over other claims against an entity in receivership, the Delaware Court of Chancery has ruled in a case of first impression.
