Fried Frank Set to Open Office in Hong Kong
Four years ago, it was the law firm merger everybody was talking about. Then it didn't happen. <br>Now the firm is turning its attention to Asia. It is set to announce today the opening of a Hong Kong office. Six partners recruited from British firm Simmons & Simmons, led by China region managing partner Huen Wong, will launch the office for Fried Frank. Another three from Simmons & Simmons, including China corporate head Stephen Mok, will come aboard early next year.
ERISA Amendments Effective Dec. 31
On Sept. 26, the Employee Benefits Security Administration of the Department of Labor (department) issued proposed regulations implementing amendments to ' 404(c) of the Employee Retirement Income Securities Act of 1974, as amended (ERISA).(The proposed regulations are at 29 CFR ' 550.404c-5.) These amendments were made by ' 624 of the Pension Protection Act of 2006 (the act) and provide relief to fiduciaries of participant-directed individual account plans where, in the absence of investment directions from a participant, the plan invests such participant's assets in a 'qualified default investment alternative.'
What Automatic Stay?
In last month's article, we stated that among the abuses of the bankruptcy system to be remedied by BAPCPA is that of serial filing. The purpose of this two-part article is to provide a brief overview of BAPCPA's new provisions in revised ' 362 of the Bankruptcy Code, to summarize the various issues examined by the courts to date, and to provide some practical recommendations from the perspectives of debtor or credit. We continue this month with a discussion of presumption.
Valuation Experts, Beware the Gatekeeper!
Valuation issues come into play throughout Chapter 11 business reorganization cases. These issues are frequently at the heart of the reorganization process and involve a wide variety of different matters. Bankruptcy courts determine value on a case-by-case basis and in light of the purpose and circumstances of the valuation.
Bankruptcy Code Amendments Alter Franchise Case Strategies
The substantial amendments made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) to the Bankruptcy Code have had a significant impact on the dynamics of franchisee bankruptcies. The BAPCPA was generally intended to accelerate Chapter 11 'reorganizations' and provide relief to certain constituencies in the bankruptcy process (eg, landlords). This article focuses on the nuances of the BAPCPA's impact in franchisee bankruptcy cases.
Litigation
Recent rulings of importance to you and your practice.
What Automatic Stay?
Among the abuses of the bankruptcy system to be remedied by The Bankruptcy Abuse Prevention Consumer Protection Act of 2005 (BAPCPA) is that of serial filing. To confront this issue, BAPCPA has primarily revised ' 362 of the Bankruptcy Code by significantly amending ' 362(c)(3), and adding a new ' 362(c)(4). As of mid-April 2006, approximately 30 cases had been published interpreting these new provisions, making this area one of the more hotly litigated BAPCPA amendments to the Bankruptcy Code. The purpose of this article is to provide a brief overview of these new provisions, summarize the various issues examined by the courts to date, and provide some practical recommendations from the perspectives of debtor or creditor.
Recharacterization
In the recent case of <i>In re Dornier Aviation (North America), Inc.,</i> the United States Court of Appeals for the Fourth Circuit held that ' 105(a) of the Bankruptcy Code provides the bankruptcy court with authority to recharacterize a claim from debt to equity. In upholding the recharacterization of a parent's $84 million claim against its wholly owned subsidiary, the Fourth Circuit made clear that form will not prevail over substance in the context of inter-company transactions. The Fourth Circuit failed, however, to provide any guidance on how inter-company transactions might be structured to avoid recharacterization under ' 105(a). This article presents one obvious, albeit not often utilized, solution: Parent corporations should collect debts due and owing from their subsidiaries to avoid the possibility of being relegated to the unenviable position of an equity investor in the event of a bankruptcy proceeding.
