Features
The Intent of Section 546(e)
<b><i>Will Reversing a Transaction 'Seriously Upset The Securities Market' Ability to Function'?</b></i><p>On Dec. 1, 2016, Bankruptcy Judge Michael J. Kaplan, held that when a private company repurchases stock from a shareholder, and the payments were made "by" the company "to" the shareholder, through a bank, those payments are not protected by Bankruptcy Code § 546(e)'s safe harbor defense because its application "cannot be permitted to turn upon the use of a bank."
Features
Make-Whole Mayhem
<i><b>Uncertain Treatment of Make-Whole Premiums Upon Bankruptcy-Induced Acceleration and Redemption of Indentures</b></i><p>Recently, tempted by attractive interest rates, certain borrowers have sought to use the bankruptcy process to shield themselves from their obligations to pay make-whole premiums contemplated by their indenture documents. Although certain courts have allowed crafty borrowers to shed unwanted make-whole obligations through the bankruptcy process, other courts refuse to sanction such manipulation.
Features
Split Ninth Circuit Requires Default Interest To Cure Default
A Chapter 11 debtor "cannot nullify a preexisting obligation in a loan agreement to pay post-default interest solely by proposing a cure," held a split panel of the U.S. Court of Appeals for the Ninth Circuit on Nov. 4, 2016.
Features
Post-Confirmation Jurisdictional Shrinkage
Although Congress has not expressly addressed when and under what circumstances bankruptcy jurisdiction ends, most courts agree that a bankruptcy court's jurisdiction "shrinks" after confirmation of a plan. This article discusses the factors that courts take into consideration in determining the extent of the post-confirmation jurisdictional shrinkage.
Features
Mission Impossible? Addressing WARN Act Liability in Liquidating Mid-Market Cases
this issue of WARN Act liability giving rise to significant administrative or priority claim risk is unique to bankruptcy.However, assuming that, for other reasons, a bankruptcy case is the best path for your client, what can you do to mitigate the risk?
Features
Arbitration Denied In Bankruptcy Priority Fight
"[T]he bankruptcy court did not abuse its discretion in denying [the debtor's former employees'] motion to compel arbitration" when the dispute turned on the relative priority of their claims, held the U.S. Court of Appeals for the Second Circuit on Oct. 6, 2016 in <i>In re Lehman Bros. Holdings.</i>
Features
Trustee Allowed to Reach Back 10 Years to Avoid a Fraudulent Transfer
Recently, a Florida bankruptcy court permitted a Chapter 7 trustee to reach back 10 years to unwind a fraudulent transfer, a period of time well beyond the two years that practitioners generally expect.
Features
The 'Death Spiral' Of U.S. Malls
One of the main causes of the "death spiral" of malls in the United States has been the bankruptcies, and subsequent liquidations, of many retailers that were once household names -- and often a mall's anchor tenants.
Features
When Can't a Creditor Credit Bid?
The growing presence of non-traditional lenders has been a noticeable trend in the finance industry for years. Yet these lenders have always played a prominent role in distressed lending. Often, they are industry participants who are not only extending a lifeline to the debtor, but perhaps more importantly, protecting their customer base.
Features
Stepping into the Shoes of the IRS to Pursue Otherwise Time-Barred Avoidance Actions Under Fraudulent Transfer Statutes
One of the rare legal issues in which bankruptcy practitioners usually are able to speak to clients in absolute terms to provide clear legal advice is the limitations period concerning the pursuit of avoidable transfers in bankruptcy proceedings.
Need Help?
- Prefer an IP authenticated environment? Request a transition or call 800-756-8993.
- Need other assistance? email Customer Service or call 1-877-256-2472.
MOST POPULAR STORIES
- Ex Parte Trademark Appeals to District Court — Lessons Learned from the Front LinesAlthough pursuit of an appeal to the Federal Circuit may under some circumstances prove to be quicker and less expensive, appeals to district courts are becoming increasingly attractive given recent changes in the law and USPTO practice in defending these actions.Read More ›
- Navigating the SEC's Marketing Rule: Compliance Challenges and Legal InsightsThe Securities and Exchange Commission (SEC) has underscored the critical importance of Marketing Rule compliance through a series of recent enforcement actions and risk alerts. This article delves into the challenges that investment advisers must navigate when marketing their services. It also explores how legal counsel and compliance consultants can effectively support their clients in adhering to both the explicit requirements and nuanced aspects of the Marketing Rule.Read More ›
- Players On the MoveA look at moves among attorneys, law firms, companies and other players in entertainment law.Read More ›
- In Pari Delicto: The Seventh Circuit Gives New Life to Evil ZombiesA recent decision is critically important to bankruptcy lawyers, particularly those who prosecute and defend causes of action brought by bankruptcy estates and their representatives.Read More ›