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'Vessel Financing': Section 1110 Cast Adrift
Section 1110 of the Bankruptcy Code, 11 U.S.C. ' 1110, provides a special exemption from the automatic stay provisions of the Code, permitting a lessor to take possession of certain equipment 60 days after the lessee files for bankruptcy. This obtains unless the lessee's trustee performs the lessee's obligations, and cures all pre-bankruptcy defaults within the 60-day period. Lessors of aircraft are familiar with the myriad cases that have interpreted the application of Section 1110 to such equipment (see Section 1110(a)(3)(A)(i)).
But what about the application of Section 1110 to vessels? Section 1110(a)(3)(A)(ii) provides a special exemption from the automatic stay provisions of the Bankruptcy Code for a 'documented vessel (as defined in Section 30101(1) of Title 46) that is subject to a security interest granted by, leased to, or conditionally sold to a debtor that is a water carrier that, at the time such transaction is entered into, holds a certificate of public convenience and necessity or permit issued by the Department of Transportation.' This provision of Section 1110, applicable to vessels, sounds reasonably comparable to the provisions relating to aircraft and rail equipment. However, the seeming analog to aircraft is illusory, and no cases have made themselves readily apparent applying Section 1110 to vessels. This situation may well exist because no U.S. flag commercial vessel holds a 'certificate of public convenience and necessity or permit,' a prerequisite to the applicability of Section 1110(a)(3)(A)(ii).
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Protecting Innovation in the Cyber World from Patent Trolls
With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.