Education & Information About Restructuring & Insolvency


SIX COMMON MISTAKES IN DRAFTING COLLATERAL DESCRIPTIONS

January 16, 2017

Drafting can easily go awry. When collateral descriptions are drafted errantly in security agreements and financing statements, secured creditors may not get what they bargained for and expensive disputes can bloom. A valid security agreement...

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PLATINUM PARTNERS: A PONZI SCHEME HIDING IN PLAIN SIGHT

January 9, 2017

No One Questioned This Hedge Fund’s Madoff-Like Returns, by Zeke Faux and published in Bloomberg.com (Jan. 4, 2017), discusses the possibly $1 billion fraud alleged to have been engineered by Platinum Partners entities under the direction of...

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Reclamation of Reclamation Claims by the Delaware Bankruptcy Court in Reichhold Holdings

December 23, 2016

Everybody knows that the dice are loaded:  reclamation rights are illusory in bankruptcy cases.  Where a supplier ships goods to a company that later files for bankruptcy, section 546(c) of the Bankruptcy Code provides reclamation remedies...

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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...

ATopTech, Inc. Files for Chapter 11 Protection in Delaware

January 17, 2017

ATopTech, Inc. (“ATopTech” or “Debtor”), an electronic design automation software company manufacturing software solutions for engineers to assist them in the physical design of integrated circuits, filed a voluntary petition for chapter 11 bankruptcy relief on January 13, 2017 in the United States Bankruptcy Court for the District of Delaware. In addition, ATopTech filed a motion to sell its businesses under section...

New York Times Article on Stanford Sexual Assault Procedures Displays Shocking Ignorance of Relevant Federal Law

December 30, 2016

Today's New York Times carries a front-page article entitled "A Majority Ruled It Was Rape.  That Isn't Enough at Stanford."  The article, which extends for two full pages inside the (ever-shrinking) front section, faults Stanford University for failing to discipline a student who was accused of sexual assault by another student, after two separate panes concluded, each by a 3-2 vote, that the accused had in fact committed a sexual...

Hanjin Shipping Update - Changes to the Time Table

November 19, 2016

Yesterday I made the post immediately below this one, discussing transparency issues in the bankruptcy proceedings of Hanjin Shipping.  It was read by thousands of people around the World in a matter of hours.  I subsequently invited those following the case closely in the shipping industry to post court filings to a website that can be made publicly available.  I am happy to help, and await a positive response.Meanwhile, I was...

Marblegate Ruling is Reversed on Appeal: Second Circuit Adopts Narrow Interpretation of TIA Section 316(b)

January 19, 2017

The Second Circuit issued its much anticipated decision in Marblegate Asset Management LLC v. Education Management Corp., holding that “Section 316(b) prohibits only non-consensual amendments to an indenture’s core payment terms.” At issue is whether the phrase “right . . . to receive payment” forecloses “more than formal amendments to payment terms that eliminate the right to sue for payment.” The Second...

Punt, Pass or Kick? Supreme Court Struggles With Jevic at Oral Argument

December 9, 2016

The U.S. Supreme Court heard oral arguments this week in the case of Czyzewski v. Jevic Holding Corp.  Although veteran Court watchers caution about seeking to predict ultimate rulings based on justices’ questions and stated concerns, it is difficult to read the hearing transcript and not come away with the view that at least some of the Court’s members are not keen to rule on the merits here.  This would be a relief to many...

Orrick’s Marc Levinson Compares Chapter 9 to Chapter 11 for the Federal Judicial Center Website

January 5, 2017

  Orrick Restructuring Senior Counsel Marc Levinson is one of the chapter 9 experts assisting in the preparation of a chapter 9 manual for bankruptcy judges and court clerks that has been posted on the website of the Federal Judicial Center, an arm of the United States Courts which educates federal judges.  Among other things, the manual will discuss the differences between chapter 9 and chapter 11 bankruptcies. The...

Swindlers and Crooks Doing Backflips: New Balleisen Book on Fraud

January 23, 2017

Not a moment too soon, Princeton University Press has just released Fraud: An American History from Barnum to Madoff by historian & Duke University Vice Provost Ed Balleisen. (Some readers might be familiar with his earlier book on bankruptcy in Antibellum America). As I learned when reviewing an earlier draft, Fraud is meticulously researched and completely fascinating, with plenty of careful attention to law and regulatory structures. The...

Delaware Organizational Meeting – ATop Tech, Inc.

January 19, 2017

Upcoming Committee Formation Meeting:  Friday, January 27, 2017, 10:00 am Case Name: 17-10111 (MFW) Location: Office of the US Trustee 844 King Street, Room 3209 Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here.  See the petition, First Day Declaration, and claims agent for further information. Contact Norman L. Pernick and ...



Corporate Debtors’ Attorney-Client Privilege In the Hands of the Bankruptcy Trustee

December 12, 2016

Imagine if every secret and strategy that you had ever shared with your attorney were laid open for the world to see.  A trustee in a business bankruptcy case may well have the power to review, publish, and wield all of the debtor’s...

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Life Partners Holdings –A Tower of Schemes Comes Crashing Down (Part 1)

December 12, 2016

If you are already familiar with the Life Partners Holdings debacle, you may think that the term “Life Partners” should stand for Brian Pardo and his partners in crime who ran that notorious company serving life sentences (instead of just...

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PUBLIC NOTICE OF SALE BY AUCTION: Chapter 11 Debtor Educational Software Company Announces the Public Sale of All the Assets of the Debtor, Bid Deadline: 2/13/2017; Auction: 2/15/2017 in Chicago

December 5, 2016

PLEASE TAKE NOTICE THAT the Chapter 11 Debtor educational software company shall sell by auction substantially all of its assets, including flash-based software platform, trademarks, and logos.   The Bankruptcy Court has entered an...

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