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 August 12, 2016
    Bankruptcy and Insolvency News and Analysis – Week Ending August 5, 2016
    Bankruptcy and Insolvency News and Analysis – Week Ending July 29, 2016
    Bankruptcy and Insolvency News and Analysis – Week Ending July 15, 2016
       

    Posts Tagged ‘Supreme Court of the United States’

    Bankruptcy and Insolvency News and Analysis – Week Ending August 5, 2016

    Friday, August 5th, 2016

    golden-gears-7866086

    Trends

    30 companies that might disappear in 2017

    Current Developments

    An Overview of the Ninth Circuit Bankruptcy Appellate Panel and its Reviewed Decisions During 2015

    Claims

    Is “Allowance” of a Claim Binding in the Next Case? Bankruptcy or Otherwise?

    Get to the Back of the Line! Delaware Bankruptcy Court Holds C-Suite Stock Compensation was Equity Security Not General Unsecured Claim

    Avoidance and Recovery

    Fraudulent Transfer Defeats Tenancy By The Entireties Protection Of Sarasota Home In Major

    Bankruptcy court failed to impute CEO’s intent to Lyondell

    Section 303(a) Precludes Substantive Consolidation Among Religious Institutions

    In Conflict With Other Circuits, Seventh Circuit Rules That Certain Transfers Involving Financial Institution Intermediaries Not Immune From Recovery By Bankruptcy Trustee

    Preference May Be Offset by an Unpaid Administrative Claim, Judge Carey Rules

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    Bankruptcy and Insolvency News and Analysis – Week Ending July 1, 2016

    Monday, July 4th, 2016

    4th of July

    Happy Birthday, America!

    Trends

    Single-Asset Real Estate Filings Inched Up in Q1 2016

    Case Commencement

    Structural Limitations on Bankruptcy Filings—Blocking Tactics on the Block

    Avoidance and Recovery

    Your Customer Just Declared Bankruptcy: Recent Decision That All Suppliers/Vendors Should Be Aware Of

    Safe Harbor Defense Bars Creditors’ State Law Fraudulent Transfer Claims

    Alternative Dispute Resolution

    Preparing for Multiparty Mediation: A Checklist — Part Two, Items 1 – 5

    Confirmation

    SPLIT NINTH CIRCUIT NARROWS DEFINITION OF BAD FAITH INSIDER IN CRAMDOWN CASE

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    Bankruptcy and Insolvency News and Analysis – Week Ending June 3, 2016

    Friday, June 3rd, 2016

    Stock Charts

    Trends

    Total Commercial Bankruptcy Filings Increase 32 Percent in May

    Case Commencement

    Blocking Member Provision in LLC Agreement Designed to Prevent Bankruptcy Filing Unenforceable

    Claims and Vendors

    When Vendors Are Consigned to a Lower Authority

    Impact of Critical Vendor Payments — More Critical Than Ever

    Executory Contracts

    First Impressions: Third Circuit Rules That a Terminated Collective Bargaining Agreement May Be Rejected Under Section 1113

    Valuation

    Finance And Law: The Pros And Cons Of Monte Carlo Simulations In Valuation

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    Bankruptcy and Insolvency News and Analysis – Week Ending April 22, 2016

    Friday, April 22nd, 2016

    money_3

    Trends

    Triple negative – making sense of the current wave of corporate restructurings

    Task Force Studying Individual Chapter 11 Filings

    Workouts and Restructuring

    Please Buckle Your Seatbelts and Check Your D&O Insurance: A Gloomy Forecast Is Ahead

    Bankruptcy Court Chips Away at Bankruptcy Remoteness of Special Purpose Vehicles

    Executory Contracts

    Late Is Never Better! Timeline to Protect Your Contract in a Market Downturn

    Claims and Creditors

    “When Worlds Collide: Article 2 of The Uniform Commercial Code and Chapter 11”

    Avoidance and Recovery

    Second Circuit Limits Creditors’ Ability to Claw Back LBO Payments

    Seventh Circuit Finds Tax Sale Avoidable

    Sales

    Third Circuit Permits Purchaser in Section 363 Sale to Make Payments to Interested Parties, Deviating from Bankruptcy Code Priority Scheme

    Confirmation

    Ninth Circuit Rulings on Equitable Mootness in Transwest and Sunnyslope Impact Third Party Investors

    Improper Calculation of Postpetition Interest Leads to Reversal of a Confirmation Order

     

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    Bankruptcy and Insolvency News and Analysis – Week Ending April 8, 2016

    Friday, April 8th, 2016

    dollar-726877_960_720

    Trends

    Number of Large Business Bankruptcies Highest Since 2010

    Sales

    Ninth Circuit B.A.P. Drove Down Bayshore Boulevard and Rendered a Decision on the Merits of a Section 363(m) Appeal in the Face of New Facts

    Avoidance and Recovery

    Bankruptcy court tightens intentional fraudulent transfer pleading requirements

    Texas Supreme Court Resolves Fraudulent Transfer Value Defense for Fifth Circuit

    Claims

    Limited Liability Company: How Far Can a Member’s Trustee Reach?

    Confirmation

    Back to Basics and the 1990s – Does the Discharge Include Alter Ego Claims?

    Cross-Border

    What Did You Expect?  Insolvency Forum Clauses

     

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    Bankruptcy and Insolvency News and Analysis – Week Ending March 4, 2016

    Friday, March 4th, 2016
    The bitcoin logo

    The bitcoin logo (Photo credit: Wikipedia)

    Trends

    February 2016 Commercial Bankruptcy Filings Increase 32 Percent Over Last Year

    Claims

    Bringing Certainty to Uncertainty: Estimation of Tort Claims

    Avoidance and Recovery

    Lack of Knowledge is No Defense: Seventh Circuit Strips Bank’s Lien on More than $300 Million in Assets

    Bankruptcy Estate

    Bitcoins Are Not Dollars in Bankruptcy Court

    Bitcoin Is “Property,” Rules California Judge in Pivotal Bitcoin Case

    Executory Contracts

    The Abolition of Dysfunctional Contracts in Bankruptcy Reorganizations

    Confirmation

    Fifth Circuit Reverses Officer’s Release in Chapter 11 Reorganization Plan

     

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

    Friday, July 10th, 2015

    wanted_decent_job

    Trends

    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

    Sales

    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

    Friday, June 26th, 2015

    us-economy-cartoon

    Jurisdiction

    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

    Confirmation

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

    Cross-Border

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

    Related Articles

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    Insolvency News and Analysis – Week Ending November 21, 2014

    Friday, November 21st, 2014
    English: The Supreme Court of the United State...

    The Supreme Court of the United States. Washington, D.C. (Photo credit: Wikipedia)

    Trends

    Ch. 11s Fall 24 Percent in Week Ended Nov. 14 from Year Ago Pace

    Third Quarter Review

    Legislation and Rules

    A Dozen Reforms the ABI’s Bankruptcy Reform Commission Report Should Endorse

    Amendments Adopted by the Supreme Court to be Effective December 1, 2014

    Jurisdiction

    Thoughts on a New Age of Consent: What Does Consent Mean with Respect to Stern Claims?

    Secured Claims

    ‘Stripping Off’ Mortgage Cases Going To High Court

    Avoidance and Recovery

    NOLs – A Recoverable Transfer?

    Positive Health Of The Fraudulent Transferee’s Good Faith Defense

    Sales

    Buyer Beware: Payment On Assumed Debt In An Asset Sale Could Be An Avoidable Preference

    Confirmation

    Cramdown Hurdles Round 2: Confirmation Can Be An Elusive Prize

    Cross-Border

    Chapter 15 Bankruptcy: Game-Changer or False Dawn?

    Forty-Four Percent of Chapter 15s Filed in S.D.N.Y. in 2014

    Suntech Chapter 15: Moving COMI and Establishing Jurisdiction Held Legitimate and Not Improper Manipulation

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    River Road Hotel Partners

    Sunday, July 10th, 2011

    One of the time-honored attractions of US bankruptcy practice is the set of tools provided for the purchase and sale of distressed firms, assets and real estate.  In recent years, the so-called “363 sale” has been a favorite mechanism for such transactions – its popularity owing primarily to the speed with which they can be accomplished, as well as to the comparatively limited liability which follows the assets through such sales.

    But “363 sales” have their limits:  In such a sale, a secured creditor is permitted to “credit bid” against the assets securing its lien – often permitting that creditor to obtain a “blocking” position with respect to sale of the assets.

    Seal of the United States Court of Appeals for...

    Image via Wikipedia

     

    Until very recently, many practitioners believed these “credit bid” protections also applied whenever assets were being sold through a Chapter 11 plan.  In 2009 and again in 2010, however, the Fifth and Third Circuit Courts of Appeal held, respectively, that a sale through a Chapter 11 Plan didn’t require credit bidding and could be approved over the objection of a secured lender, so long as the lienholder received the “indubitable equivalent” of its interest in the assets (for more on the meaning of “indubitable equivalence,” see this recent post).

    Lenders, understandably concerned about the implications of this rule for their bargaining positions vis a vis their collateral in bankruptcy, were relieved when, about 10 days ago, the Seventh Circuit Court of Appeals respectfully disagreed – and held that “credit bidding” protections still apply whenever a sale is proposed through a Chapter 11 Plan.

    The Circuit’s decision in In re River Road Hotel Partners (available here) sets up a split in the circuits – and the possibility of Supreme Court review.  In the meanwhile, lenders may rest a little easier, at least in the Seventh Circuit.

    Or can they?

    It has been observed that the Seventh Circuit’s River Road Hotel Partners decision and the Third Circuit’s earlier decision both involved competitive auctions – i.e., bidding – in which the only “bid” not permitted was the lender’s credit bid.  The Fifth Circuit’s earlier decision, however, involved a sale following a judicial valuation of the collateral at issue.

    Is it possible to accomplish a sale without credit bidding – even in the Seventh Circuit – so long as the sale does not involve an auction, and is instead preceded by a judicial valuation?

    Stay tuned.

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