The Bankruptcy Strategist

When a debtor that is a landlord rejects a real property lease in bankruptcy, the tenant has a choice. Either the tenant can treat the lease as terminated or retain its rights under the lease. These rights include the use, possession, quiet enjoyment, subletting and hypothecation of the property. In a recent case, the parties and the court grappled with this question: when does the tenant need to make that decision? When the lease is rejected, or by some other date?

The trilogy of Prince Global decisions provide a useful roadmap for cross-border practitioners exploring recognition under Chapter 15 in the U.S., as well as the key strategic tools and other considerations that are involved.

Delaware recently became the sixth state to enact the Uniform Act, with minor modifications (the Delaware Act). Part One of this article included background regarding assignments for the benefit of creditors, including historical shortcomings that the Uniform Act is intended to address. Part Two discusses the Uniform and Delaware Acts in more detail, including the uniformity, clarity, flexibility, and efficiency provided by the Uniform Act, and the specific refinements incorporated into the Delaware Act.

A New York bankruptcy judge has established a first-of-its-kind framework for valuing cryptocurrency in Celsius Network avoidance actions, a ruling that White & Case says will guide nearly 1,000 pending cases and hundreds of defaults.

In re Moche reinforces how bankruptcy courts and matrimonial courts can work in tandem and harness the specialized expertise of both tribunals. While bankruptcy courts have exclusive jurisdiction to control the disposition of assets, the threshold issue of marital property rights is a matter that comes within the unique expertise of the matrimonial court. That determination in the matrimonial court ultimately impacts what steps may occur in the bankruptcy court proceedings.