On the Move
August 24, 2009
Who's doing what; who's going where.
Business Incentives and Property Taxes in Bankruptcy
August 24, 2009
Bankruptcy is a dark cloud on a company's business. However, business incentives and property taxes can be a silver lining by bringing precious value ' such as property tax abatements, sale/use tax exemptions and, in some instances, favorable financing and utility rate reductions ' to help the company on its road to economic recovery.
The Impact of the Credit Crisis on DIP Financing
August 24, 2009
Prior to the global credit pandemic, a company in default or that faced a near-term covenant breach could either obtain relief through waivers and amendments, or refinancings. As the availability of credit shrank, the latter choice was no longer a viable solution. Moreover, a by-product of the frozen credit markets was the unexpected contraction of available debtor-in-possession financing (DIP financing).
File for Chapter 11, Get the First Month's Rent Free?
August 24, 2009
Two recent court opinions challenge the growing consensus that 11 U.S.C. ' 365(d)(3) (the "Statute," or "Section 365(d)(3)") does not require the timely payment of stub rent, which is "the rent for the interim period between the day the order for relief was entered in the bankruptcy case and the end of that month." This article offers an analysis.
DEBT Is a Four-Letter Word
July 29, 2009
Matrimonial attorneys must be able to distinguish elements of leverage risk that are accentuated in today's economy in order to present overvaluing business equity. Here's how.
On the Move
July 28, 2009
Who's doing what; who's going where.
Section 503(B)(9) Four Years Later
July 28, 2009
In 2005, Congress added Code ' 503(b)(9) and created a new administrative claim which, in effect, creates a class of "critical" pre-petition creditors that debtors can pay without court authority. The creditors in this entitled class did nothing more than deliver goods to the debtor within 20 days prior to the petition date. Interestingly, the section provides no similar relief to providers of services or any class of lender.
Pension Plan Termination Premiums in Bankruptcy
July 28, 2009
In a case of timely significance, the Second Circuit Court of Appeals has recently ruled that pension plan termination premiums are not "claims" subject to being discharged under a Chapter 11 plan, but rather, must be paid in full upon emergence from bankruptcy.
The Life and Times of the Non-Absolute Priority Rule
July 28, 2009
The absolute priority rule is supposed to provide some measure of order and certainty in the world of Chapter 11. But bankruptcy practitioners know that the mere inclusion of the word "absolute" in the rule's name does not make it so.
Ex-Heller Employees Sue Former Partners
June 23, 2009
Former employees of Heller Ehrman sued at least 179 former partners in April, demanding they fork over $32 million for the largest group of creditors in the defunct firm's bankruptcy. This article discusses the suit.
