District Court Affirms Cramdown Interest Rate Calculation in <i>Momentive </i>
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.
Are You Following ALTA Best Practices?
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.
Creating a Competitive Situation
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.
Dewey Witness Says She Never Intended To Defraud
A cooperating witness in the Dewey & LeBoeuf criminal trial, Dianne Cascino, testified last month that she didn't believe she was breaking the law when she made accounting adjustments as the firm's director of revenue support.
Buyout Funding and Death Benefits
Professional service organizations traditionally have elected a pass thru entity status (S Corp., LLC, LLP, partnership) in order to reduce double taxation at the principal's level. Similar additional taxation may occur with C Corps. and accumulated earnings tax as well as other confiscatory grabs. These issues create an impediment for the current accumulation of funds to satisfy a principal's buyout in future years.
It's Time for a Data Protection Checkup
This article is part of a series based on the BakerHostetler Data Security Incident Response Report. It focuses on developing and maintaining an information governance (IG) program. Look for further installments in future issues.
Information Is Changing Law Firm Models
The standard law firm model that has been in effect for the better part of the last 20 years is becoming less viable, and the way law firms are run is undergoing a subtle, yet significant change, driven largely by information.
How to Determine a Diligent Job Search
If a recipient spouse in a divorce action is unemployed or under-employed and seeking compensation or maintenance, that party's employability must be ascertained in order to determine a fair and just award.
Vendor Limitations of Liability for Security Breaches
Counsel advising companies on vendor contracts are in a tough spot. Cybersecurity risks presented by data outsourcing demand increasing attention and resources. At the same time, outsourcing of data to third-party vendors has become, in many instances, a business necessity.
