Education & Information About Restructuring & Insolvency

Missouri’s New Receivership Statute

August 22, 2016

Missouri has joined the ranks of those states that have modernized their receivership statutes. The Missouri Commercial Receivership Act (“MCRA”) becomes effective on August 29, 2016. Codified in Chapter 515 of the Missouri Revised...

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Optimizing Corporate Workouts With Independent Directors and Special Committees

August 15, 2016

The appointment of independent directors may benefit a financially distressed business throughout its restructuring process, including during a bankruptcy case. An independent director can be conceived of as having no direct or indirect connection to...

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Dealing With Distress For Fun & Profit – Chapter 12 – Stay Relief Strategy?

August 1, 2016

Stay Relief Strategy? A written tour of business bankruptcy and its alternatives  George Kuney and Jonathan Friedland[1] Editors’ Note:  If you are a regular reader of this column, you will know that this is the third installment in a...

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Best Bankruptcy Blogs

eSign & Commercial Finance: A License to Trash the Original Note?

January 26, 2016

Are “electronic document” provisions appearing in your commercial loan documents?  This is the second in a series examining two provisions recently reviewed by me in commercial real estate transactions.   Unfortunately, the two provisions have serious problems: for UCC Article 3 notes, making a copy of it will not clothe the copy with Article 3 protections. Copy & Trash the Original Note: No No & No Electronic...

Reclamation Claims and Lien Priority

August 26, 2016

On August 24, 2016, Judge Mary F. Walrath of the Delaware Bankruptcy Court overruling an objection to claim for reclamation.   The decision was issued in the Reichold Holdings US, Inc. Bankruptcy (Case No. 14-12237) in the Delaware Bankruptcy Court.  A copy of the Opinion is available here. While the background to this dispute is laid out in detail in the Opinion, it can be easily summarized.  A prepetition...

Eleventh Circuit Panel Makes Cursory (and Erroneous) Ruling on "Till in Chapter 11"

April 4, 2016

A few  weeks ago, a panel of the Eleventh Circuit issued an opinion, In re Seaside Engineering & Surveying, Inc., No. 14-11590, denying an appeal of a chapter 11 confirmation order, that includes, among several issues considered, a brief holding relying on [a misreading of]  Till v SCS Credit Corp.  The entire section of the opinion dealing with Till is only 7 sentences and 12 lines long. The case involved a tiny amount of...

New Rule Would Make It Easier For Consumers To Sue Banks

May 6, 2016

Per www.npr.orgMay 5, 2016:Many credit card and loan agreements these days have in the small type what's called a "mandatory arbitration clause." Most people don't even know what that means. But by signing, customers agree not to sue the financial firm in a class action lawsuit. Instead, they agree to work out any problem with an arbitrator hired by the bank."The company can sidestep the legal system, avoid accountability, and continue to pursue...

Return to Sender? Domestic Reach of Foreign Stay Can Be Modified in Chapter 15 Recognition Order, Without Trip to Foreign Court

August 18, 2016

A recent decision by the United States Bankruptcy Court for the Western District of Texas in In re Sanjel (USA) Inc. is a reminder that in a chapter 15 case, the U.S. bankruptcy court will not always apply the law of the foreign jurisdiction to U.S. creditors and U.S.-based claims.  Specifically, the case adds a wrinkle to caselaw addressing the domestic application of foreign stays through chapter 15, and in particular whether it is...

Energy Future Holdings Chapter 11 Case – The Largest Game Ever of Texas Hold’em?

May 31, 2016

The chapter 11 case of Energy Future Holdings (“EFH” or “Debtors”) roared back to life this month. Certain key conditions for the plan of reorganization approved last December (the “First Plan”) to become effective were not met by a deadline of April 30, and one of the major parties to the support agreement that underlay the First Plan gave written notice of termination on May 1.  The Debtors followed up...

English Law Schemes of Arrangement: Class Composition

August 24, 2016

  Focus on the AB InBev and SABMiller merger Having received the sanction of antitrust regulators in Europe, the U.S., China and South Africa, the planned merger of brewing giants AB InBev and SABMiller was scrutinised this week by the High Court in London on a topic very familiar to those acquainted with English law restructurings: class composition. The outcome of the hearing, that not all members of SABMiller should be considered to be in...

Disarming Holdouts in Sovereign Debt Restructurings

August 25, 2016

The pari passu litigation against Argentina—discussed extensively here on Credit Slips, on FT Alphaville, and elsewhere—caused many people to worry that future government debt restructurings would become more difficult. Some have their eye on Venezuela as the next to default, though the country and its troubled state-owned oil producer PDVSA stubbornly continue to pay external creditors despite dire economic and humanitarian...

New Delaware Chapter 15 Filing – Altos Hornos de México, S.A.B. de C.V.

August 16, 2016

Francisco Javier Gaxiola Fernández, the foreign representative of Altos Hornos de México, S.A.B. de C.V. (the “Debtor”) in a proceeding under Mexico’s Bankruptcy and Suspension of Payments law pending before the First Civil Court of First Instance for the Judicial District of Monclova, Coahuila, Mexico (the “Mexican Court”) has filed a chapter 15 petition on behalf of the Debtor before the United States...

Avoid Leaving Money on the Table: Potential Traps for Over-Secured Creditors Under Section 506(b)

July 26, 2016

While it is the exception rather than the rule, creditors in some bankruptcy cases find themselves in an over-secured position.  Those creditors are privileged because, under Section 506(b) of the Bankruptcy Code, an over-secured creditor is...

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Transparency Is Key

July 13, 2016

Firms targeting fellow restructuring professionals’ disinterestedness to gain leverage Transparency and disclosure are pillars of the bankruptcy system. Companies going through chapter 11, as debtors, are required to publicly report information...

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Dealing With Distress For Fun & Profit – Chapter 11 – Is Stay Relief Necessary?

July 4, 2016

A written tour of business bankruptcy and its alternatives George Kuney and Jonathan Friedland[1] Our most recent installment in this series gives an overview of the automatic stay.  In this installment we dive a little deeper, and we start with...

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