Education & Information About Restructuring & Insolvency


Update on CFIUS National Security Review and the Section 363 Sale: Draper Athena as Stalking Horse for Assets of ATopTech, Inc.

February 13, 2017

A transaction in which a foreign company gains control of US assets can be hammered to sleep by the President acting upon the recommendation of the Committee on Foreign Investment in the United States (“CFIUS”).  The delay of CFIUS...

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PUBLIC NOTICE OF SALE: Sustainable Indoor Farming Operation Assets

February 10, 2017

HOWARD B. SAMUELS, NOT INDIVIDUALLY, BUT SOLELY AS ASSIGNEE FOR THE BENEFIT OF CREDITORS (“ASSIGNEE”) OF FARMEDHERE, LLC (“FARMEDHERE”) ANNOUNCES SALE OF ASSETS (“ASSETS”)   1. Sale The Assignee will conduct a...

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Creditors’ Committees in Chapter 11 May Be Under Attack

February 7, 2017

S. Jason Teele, Esq., Michael A. Brandess, Esq., Jack O’Connor, Esq. [1]     The Delaware Bankruptcy Court has ruled that professional fees are not limited to the amount of the “carve-out” approved as part of 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...

Delaware Bankruptcy Court Issues 2017 Local Rule Amendments

February 13, 2017

Earlier this month, the U.S. Bankruptcy Court for the District of Delaware (the “Delaware Bankruptcy Court”) released an update to the Local Rules for the United States Bankruptcy Court District of Delaware (Effective February 1, 2017) (the “Local Rules”).  According to Local Rule 1001-1(e), the 2017 version of the Local Rules governs all cases or proceedings filed after February 1, 2017, and also applies to...

Sally Yates Should be Disbarred

January 31, 2017

I/m no fan of President Trump or his immigration policy, bit I don't know if there has ever been as massive and blatant a departure from professional responsibility as Sally Yates' instruction to all DOJ lawyers this week not to defend their client in pending lawsuits because, while conceding that the client had taken an action that was "lawful on its face", she did not believe the "policy choice embodied in [the relevant] executive order is wise...

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...

Recoupment – Is it the same transaction?

February 15, 2017

Recoupment is an equitable remedy – not expressly addressed in the Bankruptcy Code – that permits the offset of mutual debts arising out of the same transaction or occurrence.  Unlike typical setoff, if recoupment applies, prepetition debts can be set off against postpetition debts.  A recent decision from the Delaware bankruptcy court demonstrates that the availability of recoupment often depends on how the court defines...

Delaware Bankruptcy Judge: A Carve-Out for Fees Is Not a Cap

January 31, 2017

Judge Christopher Sontchi recently issued an important opinion in the Molycorp chapter 11 case.  He held that a standard carve-out in a financing order for the fees of counsel and other professionals for an official creditors’ committee will not later limit the ability of such professionals to be paid in full under a confirmed plan of reorganization.  As with many decisions which come out of the Delaware bankruptcy court, this...

Debtwire European Distressed Debt Market Outlook 2017

February 7, 2017

  The 2017 Debtwire European Distressed Debt Outlook report surveyed 100 distressed investors and 30 private equity funds to establish the outlook for 2017.  Jointly sponsored by Orrick and Greenhill, the report predicts that European restructurings will hit their next peak in 2017, with respondents citing interest rate rises (22%), geopolitical conflict (21%) and Brexit (16%) as the most important macroeconomic factors driving this...

Stripping PDVSA's Assets

February 18, 2017

This is a joint post by Mark Weidemaier and Mitu Gulati In a previous post, we talked about how ordinary corporate-law principles, and especially the rules concerning piercing the corporate veil, might play an important role in any debt restructuring conducted by Venezuela or PDVSA, the state oil company. As an example, we cited the fact that PDVSA doesn't own the oil reserves it exploits and the possibility that Venezuela might transfer the...

New Delaware Chapter 11 Filing – Calrissian LP

February 16, 2017

On February 15, 2017, Calrissian LP, a Burlingame, CA-based entity, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 17-10356). Calrissian is the parent holding company of Our Alchemy LLC (Case No. 16-11596) and Anderson Digital LLC (Case No. 16-11597), which filed petitions for relief under Chapter 7 in the Bankruptcy Court for the District of Delaware on July 1, 2016. Those...



PUBLIC SERVICE ANNOUNCEMENT: Fantastic Continuing Education / Networking Event for Asset-Based Lenders & Factors

February 5, 2017

FEBRUARY 9TH , 2017 NYC   The International Factoring Association North East Chapter (“IFA/NE”) is hosting what promises to be an excellent event for asset-based lenders and factors, as well as companies that borrow from...

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BANKRUPTCY SALE OF FIVE ENVIRONMENTALLY IMPACTED DEVELOPMENT SITES IN NEW JERSEY, OHIO, AND ALABAMA: Keen-Summit Capital Partners LLC Is The Real Estate Broker for Chapter 11 Estates of Owners

BANKRUPTCY SALE OF FIVE ENVIRONMENTALLY IMPACTED DEVELOPMENT SITES IN NEW JERSEY, OHIO, AND ALABAMA: Keen-Summit Capital Partners LLC Is The Real Estate Broker for Chapter 11 Estates of Owners

February 1, 2017

See Below for Photos   Offer deadline March 22, 2017.  All transactions are subject to Bankruptcy Court approval. Keen-Summit Capital Partners LLC , has been engaged by the chapter 11 estates of the debtors in the jointly-administered...

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90-Second Investing Lesson: GP, LP and Sponsor

90-Second Investing Lesson: GP, LP and Sponsor

February 1, 2017

[Editor’s Note: this article originally appeared on Accredited Investor Markets (AIMkts) ]   DISTRESSED ASSET INVESTORS should always be aware of the alternatives available to them, and also remain abreast of potential competitors,...

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