Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Lenders won a victory on Aug. 15 when the Third Circuit limited the equitable remedy of substantive consolidation in the Owens Corning reorganization case. In re Owens Corning, ____ F.3d ___, 2005 U.S. App. LEXIS 17150*1 (3d Cir. 2005), amended by 2005 U.S. App. LEXIS 18043 (3d Cir. Aug. 23, 2005); further amended Sept. 2, 2005, petitions for reh'g en banc filed Aug. 29, 2005. Reversing the district court, the court held that “affiliated [debtor and non-debtor] entities” could not be “substantively” consolidated on the facts of the case before it. According to the court, the debtor and its allies sought substantive consolidation, a “last-resort remedy,” in order to “deprive one group of creditors [ie, the unsecured lenders] of their rights while providing a windfall to other creditors.” Id. at *5-*6. The future claimants' representative and a creditors' committee filed petitions for rehearing en banc on Aug. 29. Answers to those petitions were due to be filed by Sept. 12.
Practical Significance
The Owens Corning decision means that creditors can have greater assurance that a deal structure with subsidiary/affiliate credit support will be respected in a bankruptcy case. Moreover, the substantive consolidation remedy will be unavailable if it would unfairly harm certain creditors in order to benefit others.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?