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 14, 2015
    Bankruptcy and Insolvency News and Analysis – Week Ending August 7, 2015
    Bankruptcy and Insolvency News and Analysis – Week Ending July 31, 2015
    Debt Equity: Recharacterization of Debt in Bankruptcy Proceedings – And What To Do About It
       

    Posts Tagged ‘“United States Bankruptcy Court”’

    Bankruptcy and Insolvency News and Analysis – Week Ending August 14, 2015

    Friday, August 14th, 2015

    1923_german_financial_crisis

    Avoidance and Recovery

    Assumption/Assignment of Contracts – Preference Defense

    Fraudulent Transfer, Breach of Fiduciary Duty Claims Constitute Equitable Tolling

    Sales

    Chapter 11 Sales: Believe It Or Not, There Really Are Limits

    Transferring Customer Data in an Asset Sale

     

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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 April 24, 2015

    Friday, April 24th, 2015
    Historic Minnesota Supreme Court Chamber in th...

    Historic Minnesota Supreme Court Chamber in the Minnesota State Capitol (Photo credit: Wikipedia)

    Trends

    Why It’s OK That Companies Are Dying Faster Than Ever

    Business Bankruptcy Filings Continue To Decline, Will The Trend Continue?

    Retail Chapter 11 Filings Up, Bucking Bankruptcy Trends In Economic Recovery

    Proposed Recommendations for the Reform of Chapter 11 U.S. Bankruptcy Code

    Administration

    SEC Temporary Asset Freeze Not Barred by Automatic Stay Provisions

    US SDNY Bankruptcy Court Finds Bank Violated Automatic Stay by Placing Administrative Freeze on Debtor’s Bank Account

    Avoidance and Recovery

    Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

    Valuation

    Valuation of derivatives and complex securities

    Confirmation

    ABI Commission Report – Cramdown Interest Rates

    Cross-Border

    US Bankruptcy Court Recognized Israeli Liquidation Proceeding in a Chapter 15 Case

    Delaware decisively ousts New York as friendliest US cross-border insolvency venue

     

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    Insolvency News and Analysis – Week Ending April 17, 2015

    Friday, April 17th, 2015
    Trade Off theory diagram

    Trade Off theory diagram (Photo credit: Wikipedia)

    Trends

    Corporate bankruptcies are on the rise in America

    U.S. public companies seek bankruptcy at fastest 1st-qtr rate since 2010

    Q1 Bankruptcy Filings Fall 15%

    Dr. William Rule (AOUSC): When Will Bankruptcy Filing Trends Change Course?

    The $12,473 Corporate Reorganization

    Current Developments

    Bankruptcy Year In Review 2014

    Corporate Governance

    Corporate Governance In Chapter 11 – Business As Usual, With Possible Exceptions

    Administrative Claims

    Reclamation, Administrative Claims and Other Possibilities for Recovery When a Factor Has Not Approved Orders

    Unsecured Claims

    Mandatory Subordination: How Even A Money Judgment Can Be Treated Like Equity In Bankruptcy

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    Insolvency News and Analysis – Week Ending April 10, 2015

    Friday, April 10th, 2015

     

    Pigs Get Fat

    Trends

    Q1 Distressed debt & bankruptcy restructuring review: Thomson Reuters

    ABI Commission’s Plan Process and Confirmation Recommendations: A Mixed Bag for Secured Creditors

    Weil’s Bankruptcy Blog: 2014 Annual Review

    Out-of-Court Restructuring

    Recent Case Law Impacting Debt Transactions

    Sales and Distressed Investing

    Distressed debt: Loan to own investment strategies after Fisker

    Hedge Funds and Distressed Debt Investing Program – Summary

    Avoidance and Recovery

    9th Circ. Panel Bolsters Trustees’ Reach-Back Powers

    Secured Claims

    Have Courts Left The Pinegate Open?

    Confirmation

    Tipping Point: Plan Clarification or Plan Modification? Third Circuit Denies Bankruptcy Court’s Use of Its Plan Clarification Powers to Circumvent Plan Modification Requirements of Section 1127

    Non-Consensual Third-Party Releases: Eleventh Circuit Joins “Pro-Release” Majority

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    Insolvency News and Analysis – Week Ending March 20, 2015

    Sunday, March 22nd, 2015

    jobs

    Trends

    Poll: Retail could push bankruptcies to rise

    Will Lower Unemployment Drive Bankruptcies?

    Case Commencement

    Petitioning Creditor Concerns in Involuntary Chapter 11

    Chapter 11 Triage: Diagnosing a Debtor’s Prospects for Success

    Sales

    Bankruptcy Sales: The Stalking Horse

    Claims

    Litigation or Estimation? When Should Nonbankruptcy Actions Continue in Their Original Forums, and When Should They Be Resolved Through Estimation in Bankruptcy Court?

    Look Before You Lend: Creditors’ Rights Against LLC Owners

    Avoidance and Recovery

    Eighth Circuit Says Focus is on the Intent of the Debtor in Fraudulent Transfer Law, Does Not Address Ponzi Scheme Presumption

    Cross-Border

    US Bankruptcy Court Declines to Grant Comity to Mexican Labor Board’s Decision

    Jacobs v. Terpitz: Entering Into A Partnership Constitutes “Minimum Contacts”

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    Insolvency News and Analysis – Week Ending March 13, 2015

    Friday, March 13th, 2015

    bankruptcy

    Trends

    Survey sees potential for rise in Chapter 11 filings this year

    Return of the Turnaround?

    Executory Contracts

    Dysfunctional Analysis Part 1

    Dysfunctional Analysis Part 2

     Related Articles

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    Bankruptcy and Insolvency News and Analysis – Week Ending March 6, 2015

    Friday, March 6th, 2015

    Secured Credit

     

    Trends

    Bankruptcy Filings Down Again 10.1% in February 2015

    ABI: February Chapter 11 Filings Down 25%

    Secured Claims

    No Security by Obscurity: The Importance of Clearly Identifying Collateral

    Avoidance Actions and Recoveries

    Avoiding the Avoid: Re-Securing the Mortgage Lender Post-BFP

    Intellectual Property

    Don’t Complicate Things: Existence of a License Comes Down to the Terms of a Contract

    Confirmation

    Del. District Court Upholds Use of Pre-Confirmation Tender Offers

     

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    Insolvency News and Analysis – Week Ending January 16, 2015

    Sunday, January 18th, 2015
    A bond from the Dutch East India Company, dati...

    A bond from the Dutch East India Company, dating from 7 November 1623, for the amount of 2,400 florins. (Photo credit: Wikipedia)

    Legislation and Reform

    ABI Wants Chapter 11 Easier for Small Companies: Bankruptcy

    Automatic Stay

    Prepetition Stay Waivers: Which Way Is The Wind Blowing?

    Postpetition Ratification of Prepetition Stay Waivers – A Possible End Around of the General Prohibition Against Prepetition Waivers of Bankruptcy Rights?

    Secured Claims

    Charging Liens and Trump Cards: Specific Isolated Funds Not Required

    UCC Collateral Description: More May Not Be Better

    Unsecured Claims

    Chesapeake Bond Redemption Case: Ambiguity, Plain Meaning and Value

    Reorganization and Exit Strategy

    Cashing Out: The Rise of M&A in Bankruptcy

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    What’s In A Name?

    Thursday, October 2nd, 2014

    William Shakespeare

    “What’s in a name?” Shakespeare once asked, rhetorically.  According to Shakespeare’s character Juliet – and according to the US Bankruptcy Court for the District of Columbia – not a great deal.

    In a decision issued in early August, US Bankruptcy Judge Martin Teel, Jr. held that the so-called “general partner” of a District of Columbia limited liability partnership (LLP) could not, despite her title, initiate an involuntary bankruptcy proceeding against the debtor LLP.

    Bankruptcy Code section 303(b)(3) provides that one or more of a partnership’s general partners are eligible to commence an involuntary petition against the entity.  Acting under this section, the designated “general partner” of Washington DC’s Beltway Law Group, LLP commenced an involuntary Chapter 7 case against her own firm.  Judge Teel subsequently found in reviewing the petition that – notwithstanding her title of “general partner” – the principal of a District of Columbia LLP could not commence an involuntary petition against the entity.

    Judge Teel observed that the term “general partner,” for purposes of section 303(b)(3), refers to a partner who has at least some personal liability for the partnership’s debts.  Under District of Columbia partnership law, however, partners in an LLP are not liable for the LLP’s debts as a result of their partnership status.  Instead, such partners are at risk only to the extent of the capital subscribed.  An LLP is therefore more akin to a “corporation” as that term is used in section 101(9)(A).

    Judge Teel allowed that if an LLP had previously been a partnership within the contemplation of section 303(b) such that its partners were liable for the former partnership’s debts, the LLP’s status as a partnership for purposes of those debts would remain in place.  But this was not Beltway Law Group’s case.  Consequently, the petitioner – despite her title – was not a “general partner” for purposes of commencing an involuntary petition against the LLP.

    The limited liability partnership is a common entity form in many jurisdictions.  It is also an entity form which did not exist at the time the Code was drafted.  Understanding how the form is treated for purposes of involuntary filings provides useful guidance in the event of financial distress and/or a dispute amongst the holders of interests in an LLP.

    Though based in local law (here, the District of Columbia), Beltway Law Group’s discussion provides a helpful, straightforward analytical framework for determining whether an LLP may ever be classified as a “partnership” for purposes of an involuntary bankruptcy filing.  Of particular help is Judge Teel’s clarification of the difference between a “corporation” and a “partnership” as those terms are employed by the Code.

    Beltway Law Group provides localized – but nevertheless useful – guidance for practitioners who may be evaluating the possibility of an involuntary “partnership” bankruptcy filing.

     

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