Education & Information About Restructuring & Insolvency


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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PUBLIC NOTICE OF SALE: Lee E. Buchwald, Chapter 7 Trustee of Magnesium Corporation of America & Renco Metals, Inc., to Hold 363 Sale of Interest in $213 Million Judgment Against The Renco Group, Inc. & Ira Leon Rennert

July 20, 2016

Lee E. Buchwald, the Chapter 7 trustee of Magnesium Corporation of America and Renco Metals, Inc. (“Debtors”), announces a bankruptcy auction of an interest in certain litigation claims against The Renco Group, Inc. and Ira Leon Rennert,...

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PUBLIC NOTICE OF SALE: Howard B. Samuels as Assignee for the Benefit of Creditors of Olympic Oil Ltd. Announces a Public Auction Sale of All the Assets of Olympic Oil Ltd.

July 18, 2016

NOTICE OF PUBLIC SALE BY ORDER OF ASSIGNEE FOR THE BENEFIT OF CREDITORS OF  OLYMPIC OIL LTD. 5000 W 41st St. CICERO, IL  60804 SALE OF ASSETS: Notice is hereby given that on Monday, July 25, 2016 at 2:00 pm, central time (the “Date of...

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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...

Quantum Foods: The Intersection of Preference Litigation and Administrative Claims

July 25, 2016

On July 25, 2016, Judge Kevin Carey of the Delaware Bankruptcy Court issued a thorough decision pursuant to a motion for judgment on the pleadings analyzing the intersection of a preference defendant’s post-petition administrative claim and their preference exposure.  A copy of the Opinion is available here. In the Opinion, Judge Carey cites the Third Circuit’s Friedman’s decision extensively:  Friedman’s...

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...

Desperate Times Call for Desperate Measures: Delaware Bankruptcy Court Doesn’t Answer in Syntax-Brillian, Denying Motion to Remove Trustee

July 26, 2016

The Bankruptcy Code’s priority scheme provides that the shareholders generally cannot receive anything on account of their investment until all secured, priority and unsecured creditors are paid in full.  This principle applies even when the company—and by extension, its shareholders—is a victim of fraud.  When such an unfortunate situation arises, as it has in the case of Syntax-Brillian, one cannot help but...

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...

Supreme Court to Resolve Circuit Split Over Structured Dismissals

July 26, 2016

The Supreme Court again will be addressing the powers of bankruptcy courts. At the end of the term, the Court granted certiorari in Czyzewski v. Jevic Holding Corp. to decide whether a bankruptcy court may authorize the distribution of settlement proceeds in a way that violates the statutory priority scheme in the Bankruptcy Code.  No. 15-649, 2016 WL 3496769 (S. Ct. June 28, 2016).  The Supreme Court is expected to address this...

Payday Lending Regulation: The Substitution Effect?

July 26, 2016

A common argument made against regulating small dollar credit products like payday loans is that regulation does nothing to address demand for credit, so consumers will simply substitute their consumption from payday loans to other products:  overdraft, title loans, refund anticipation loans, pawn shops, etc. The substitution hypothesis is taken as a matter of faith, but there's surprisingly little evidence one way or the other about it...

U.S. Supreme Court to Weigh in on Structured Dismissals and Settlements Circumventing the Bankruptcy Code’s Priority Scheme

July 12, 2016

On June 28, 2016, the U.S. Supreme Court agreed to hear a challenge to a Third Circuit-affirmed settlement and dismissal of the chapter 11 cases of Jevic Transportation, Inc. (“Jevic”) and certain of its affiliates.  See Official Comm. of Unsecured Creditors v. CIT Grp./Bus. Credit Inc. (In re Jevic Holding Corp.), 787 F.3d 173 (3d Cir. 2015), cert. granted Czyzewski v. Jevic Holding Corp., No. 15-649, 2016 WL 3496769 (U.S....



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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DON’T LET YOUR MONEY GO UP IN SMOKE: A Legal Marijuana Business Owes Me Money; Now What?

June 27, 2016

Times and mores are changing.  More and more people and more and more states have de-stigmatized and legalized (in at least some respects) marijuana use, sales and cultivation.  As the marijuana “industry” expands, and however...

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