When Is Mediation Appropriate Pursuant to Bankruptcy Code Section 327(a)?
January 31, 2016
With the utilization of mediation as a dispute resolution tool in bankruptcy cases becoming increasingly common, it is important that courts remain vigilant in protecting the integrity of the mediation process. As the Second Circuit once famously stated in another context, "[t]he conduct of bankruptcy proceedings not only should be right but must seem right."
'Watch Your Attitude, Petitioning Creditors!'
January 31, 2016
The Bankruptcy Code contains relatively clear and straightforward requirements and standards regarding the eligibility of creditors to file an involuntary bankruptcy petition against a debtor. If such criteria are met, do the creditors' intentions, which are not specifically referenced in this context in the statutory framework, come into play at all?
A Cure By Any Other Name
January 31, 2016
Section 1123 (a)(5)(G) of the Bankruptcy Code provides that, "[n]otwithstanding any otherwise applicable nonbankruptcy law, a plan shall ' provide adequate means for the plan's implementation, such as ' curing or waiving of any default." But what, exactly, does it mean to cure a default?
Update on Bankruptcy Fee Shifting
December 31, 2015
Professional fees are always important to clients and lawyers in bankruptcy cases. As the recent decisions discussed in this article show, the fee-shifting debate is still alive.
Marijuana and Bankruptcy? Not Really
December 31, 2015
Like many others, parties engaged in or deriving income from the legal commercialization of medical marijuana, either directly or through another party are not immune to financial distress, and sometimes, seeking bankruptcy relief may be strategic or necessary. Unfortunately, Marijuana-Related Parties have found elusive the protections and benefits under the Bankruptcy Code.
<b><i>In Re Revel AC, Inc.:</i></b> The Third Circuit's Roadmap Around Equitable Mootness
December 31, 2015
Recently, in <I>In re Revel AC, Inc.</I>, the Third Circuit provided guidance on "how to conduct a balancing of the stay factors." While the court's analysis in <I>Revel</I> was not a shocking revelation, it provides significant guidance on the most effective way to avoid losing appeal rights to the hard-to-pin-down doctrine of equitable mootness.
Disposition of Partial LLC Interests in Bankruptcy
November 30, 2015
The most obvious and logical candidates to purchase an estate's LLC interests are the other, non-bankrupt members because the market for selling privately held LLC interests is thin, and dispositions to third parties may raise complications concerning sales of unregistered securities.
Employee-Related Litigation
November 30, 2015
Business bankruptcy filings are down significantly from their high point during the Great Recession. What appears to have replaced foreclosures and institutional debt issues as the straw that breaks the camel's back is litigation. In many cases seen locally (in the Central District of California), the nature of litigation that pushes a company over the line comes in the form of employee-related causes of action.