Landlord's Claim in Bankruptcy Case Puts Its Letter of Credit Proceeds At Risk
June 01, 2016
If a landlord has drawn down the letter of credit proceeds and withdrawn the security deposit in full after the tenant's default, filing a proof of claim in the tenant's subsequent bankruptcy proceeding may invite a bankruptcy court's consideration of whether those funds are or should be assets of the bankruptcy estate.
Metals Exploration Bankruptcies
May 01, 2016
The past several years have not been kind to commodities exploration companies. And the difficult pricing environment has taken a toll on exploration companies.
Non-Madoff Defendants
May 01, 2016
A bankruptcy trustee, given the responsibility to liquidate estate assets and distribute the resulting funds to creditors, frequently must pursue causes of action against non-debtors who have liability to the estate. It is not surprising that such competing claims arise frequently in bankruptcy cases involving Ponzi schemes.
CT Bankruptcy Court Invalidates Lawsuit Funding Agreement
April 01, 2016
Lawsuit funding companies have routinely filed claims as creditors in tort plaintiffs' bankruptcy actions when the debtor has failed to repay litigation funding advances. Whether bankruptcy courts will enforce lawsuit funding agreements depends on the applicable state law.
Seventh Circuit Voids Lien-Securing Rescue Loan
April 01, 2016
A "bank [making a secured rescue loan] had information that should have created the requisite suspicion ' to conduct a diligent search for possible dirt" ' <I>i.e.</I>, whether the debtor had the right to pledge $312 million of customer securities, held the U.S. Court of Appeals for the Seventh Circuit on Jan. 8, 2016.
Valuing Bids in Bankruptcy Auctions
February 29, 2016
Bids in bankruptcy auctions can be divided into two broad categories: all-cash bids; and non-cash and credit bids. This article discusses some important issues raised by non-cash bids.
Bankruptcy Code Section 1113 Trumps NLRA
February 29, 2016
A significant problem confronting many debtors seeking to reorganize through Chapter 11 involves the resolution of labor contract issues. A recent decision from the U.S. Court of Appeals for the Third Circuit will likely impact how that problem is solved by debtors teetering on the brink of, or already in, Chapter 11 where their operative collective bargaining agreement has or soon will expire.
Structured Dismissals and Application of Non-Estate Proceeds
February 29, 2016
One of the more significant changes to Chapter 11 practice has been the use of section 363 to sell the assets of a debtor, prior to confirmation of a plan, as a means to restructure and maximize value. This transactional use of the Bankruptcy Code has, by necessity, changed how cases are administered.