The South Bay Law Firm Law Blog highlights developing trends in bankruptcy law and practice. Our aim is to provide general commentary on this evolving practice specialty.

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      Bankruptcy and Insolvency News and Analysis – Week Ending November 13, 2015
    Bankruptcy and Insolvency News and Analysis – Week Ending November 6, 2015
    Bankruptcy and Insolvency News and Analysis – Week Ending October 30, 2015
    Bankruptcy and Insolvency News and Analysis – Week Ending October 23, 2015

    Bankruptcy and Insolvency News and Analysis – Week Ending July 31, 2015

    July 31st, 2015



    Fitch: U.S. Consumer Bankruptcies Set to Fall to Eight-Year Low

    Bankruptcy Filings Down 12 Percent Since Last June


    Credit Bidding: Not An Absolute Right (And What Does That Mean?)

    Avoidance and Recovery

    The Fifth Circuit Declares A Mulligan In The Golf Channel “Innocent Transferee” Case


    Tenth Circuit Declares “No Recharacterization Without Justification”


    SDNY Sides with Fifth Circuit and the UNCITRAL Model Law when Granting Recognition to OAS S.A. et al.

    OAS S.A. Part II – SDNY Holds That Austrian Financing Subsidiary Has Its Center of Main Interests in Brazil

    OAS Chapter 15 decision sheds new light on cross-border insolvency practice, but may add complexity to financial institutions’ global credit risk management


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    Debt Equity: Recharacterization of Debt in Bankruptcy Proceedings – And What To Do About It

    July 30th, 2015


    How can an ostensible lending transaction be recharacterized later on as an equity investment?

    When a client decides to extend debt funding to a struggling venture that finds itself in bankruptcy, this loan can later be “recharacterized” as equity, leaving your client to wait at the back of the line behind “true” lenders and lienholders.

    On Tuesday (7/28), colleagues Victor Sahn and Jeff Pomerance of SulmeyerKupetz Professional Corporation joined me and about 30 of our friends for a webinar discussion on debt-equity recharacterization and the related (but distinct) concept of claim subordination in bankruptcy.

    View it here.

    Update:  A 3-judge panel of the Tenth Circuit Court of Appeals has very recently issued a decision on this issue (available here), upholding prior authority and deciding a request for recharacterization in favor of the creditor.  Along the way, the Tenth Circuit acknowledged a split in the Circuits over the basis for Bankruptcy Courts’ authority to recharacterize claims.  Will we see a trip to the Supreme Court?

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    Bankruptcy and Insolvency News and Analysis – Week Ending July 10, 2015

    July 10th, 2015



    Bankruptcy Filings Fall 12 Percent for the First Half of 2015, Commercial Filings Drop 19 Percent

    Automatic Stay

    District Court Holds Swap Claim Assignee Not A Swap Participant Entitled To Safe Harbor Rights


    Onward, Christian Soldiers: Some Guidance on 363 Sales, Fair Auctions, and Proposed Sales to Insiders

    Avoidance and Recovery

    Fifth Circuit Seeks Mulligan on Texas Law Question in Golf Channel case

    Related Articles

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    Bankruptcy and Insolvency News and Analysis – Week Ending June 26, 2015

    June 26th, 2015



    Difficulties in Pursuing Non-Bankruptcy Litigation in Bankruptcy Court

    Corporate Governance

    The LLC Member In Bankruptcy: Ehmann And Its Progeny

    Claims Objection And Subordination

    Mandatory Subordination of Claims Arising from the Purchase or Sale of Securities

    Can You Object to a Claim Just Because It Doesn’t Include Supporting Documentation? The Answer May Not Be as Simple as You Think

    Avoidance and Recovery

    Everything Has Its Own Value: 7th Circuit Holds That Forbearances by a Lender May Be Considered When Determining Reasonably Equivalent Value


    Insight – Trucker’s bankruptcy exit may roughen road for small creditors


    Raising a Drawbridge Objection: Eligibility in Chapter 15 Cross-Border Insolvency Cases

    Related Articles

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    Bankruptcy and Insolvency News and Analysis – Week Ending June 19, 2015

    June 19th, 2015

    Uncle Sam is Broke


    Return of the Turnaround?

    Polsinelli’s Jim Bird talks top five distressed industries

    Secured Claims

    Video Interview: Discussing Bank of America v. Caulkett, Supreme Court Ruling Survives Bankruptcy


    Losing Momentive: A Roadmap to Higher Cramdown Interest Rates

    Can You Vote More Than Once? The Bankruptcy Code’s Current “Numerosity” Standard Under § 1126(c) and Possible Reform

    Cramdown Hurdles Round 3: Try, Try Again

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    Bankruptcy and Insolvency News and Analysis – Week Ending June 5, 2015

    June 5th, 2015

    Down With the Rich


    May Commercial Chapter 11 Bankruptcies Increase 16%

    Quick Bankruptcy Exit May Lead to Return Trip, Professionals Say

    Unsecured Claims

    Setoffs – Cutting Your Losses Both Inside and Outside Bankruptcy

    Secured Claims

    United States Supreme Court Begrudgingly Extends Dewsnup Decision

    You’re Late! You’re Late! For a Very Important Date! Seventh Circuit Holds Bankruptcy Rule 3002(c) Deadline to File Proofs of Claim Applies to Secured Claims

    The ABI Commission on Reform of Chapter 11 Final Report: What Secured Creditors Need to Understand

    Recent Unitranche Issues in the RadioShack Bankruptcy Case

    Fodder for the Dinner Table: The Rights of Secured Creditors in Chapter 11


    Spoken in Your Office, Read in the Courtroom: What Corporate Officers and Trustees Need to Know About the Waiver of the Attorney-Client Privilege in Bankruptcy


    In re Jevic Holding Corp: Third Circuit Allows Structured Dismissal of Chapter 11 Case that Violates the Bankruptcy Code’s Priority Scheme

    Related Articles

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    Bankruptcy and Insolvency News and Analysis – Week Ending May 29, 2015

    May 29th, 2015

    Run on the Bank

    Jurisdiction and Procedure

    All’s Wellness That Ends Well?: Supreme Court Permits Parties To Consent To Bankruptcy Court’s Entry Of Final Judgment On Stern Claims

    2015 Amendments to the Federal Rules and Potential Changes in 2016


    Third Circuit Authorizes Structured Dismissal of Chapter 11 Case


    New Focus On Cross-Border Restructuring Of Groups For The Recast EC Regulation On Insolvency Proceedings


    DTEK Restructuring Scheme Opens Door For Global Bond Issuers To Bypass Chapter 11

    The International Comparative Legal Guide to Lending & Secured Finance 2015

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    Happy Memorial Day

    May 25th, 2015

    Memorial Day

    We’ll be back next week with more insolvency news and analysis.

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    Insolvency News and Analysis – Week Ending May 15, 2015

    May 15th, 2015



    Chapter 11 Duration, Preplanned Cases and Refiling Rates: An Empirical Analysis in the Post-BAPCPA Era

    From the Abstract: 

    “This article empirically examines and quantifies the effect of the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) on three distinct aspects of the Chapter 11 process: a) the duration of traditional Chapter 11 cases; b) the use of prepackaged and prenegotiated bankruptcies; and c) debtor refiling rates. The sample studied consists of companies with more than $100 million in assets that both filed for and exited Chapter 11 between 1997 and 2014. BAPCPA is found to be associated with shorter Chapter 11 case duration, and an increased use of prepackaged and prenegotiated bankruptcies. Additionally, BAPCPA is found to be associated with an increase in the proportion of firms that soon refile for bankruptcy. It seems that the 2005 amendments force the debtor to emerge hastily from its Chapter 11 proceedings, ignoring operational and structural problems and, therefore, not achieving true rehabilitation.”


    Avoidance and Recovery

    Securitized Loan Payments Safe Harbored Under Section 546(e)

    Ninth Circuit Insulates Corporate Insider from Preference Liability

    Bankruptcy Court Analyzes Preference and Fraudulent Transfer Claims as Applied to the Termination of a Lease



    In re Motors Liquidation Co: SDNY Bankruptcy Court Denies Successor Liability Claims Against New GM for Ignition Switch Defect


    Court Reiterates that Debtor’s Setoff Rights Trump those of Claimant


    Chapter 15 Cross-Border Insolvency Means Comity and Cooperation; Not Necessarily Comedy and Concern

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    Insolvency News and Analysis – Week Ending May 8, 2015

    May 8th, 2015

    2015-05-08 -  War of Wealth


    Commercial Chapter 11 Bankruptcies Drop 41% in April

    Avoidance and Recovery

    Payments to Investors in a Securitization Structure Protected from Avoidance


    ABI Commission Report – Exculpatory Clauses in Plans

    Distributions – Section 1143

    Supreme Court Bankruptcy Decision Strengthens Creditor Leverage in Plan Negotiations


    A Comparative Overview of Transatlantic Intercreditor Agreements

    Related Articles

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