Stalking Horse Bidder in Section 363 Sales: Benefactor or Predator?
May 02, 2015
Outside of U.S. bankruptcy usage, and for the vast majority of its life, the term "stalking horse" has referred to an artifice for predators. In some circumstances, a stalking horse bidder in a section 363 sale can more closely resemble the term's original meaning.
On the Move
April 02, 2015
Who's doing what; who's going where.
Credit Bidding: Secured Creditor Beware
April 02, 2015
The right to credit bid under section 363(k) of the Bankruptcy Code can be an important safeguard that protects a secured creditor against the risk that its collateral may be undervalued at an asset sale, and courts have traditionally described a secured creditor's right to credit bid as fundamental and near absolute. However, as some bankruptcy courts have recently reminded us, the right is not absolute, and may be limited by the bankruptcy court "for cause" under section 363(k) of the Bankruptcy Code.
'Redemption Option Value'
April 02, 2015
On Dec. 8, 2014, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 issued its 2012-2014 Final Report and Recommendations (the Report) proposing numerous changes to Chapter 11 of the Bankruptcy Code. This article focuses on the Commission's proposal to compel senior creditors to pay a mandatory "tax," or so-called "redemption option value" (ROV), to junior stakeholders.
ABI Bankruptcy Reform
April 02, 2015
The ABI Commission recently recommended decimating the concept of adequate protection for cash flow lenders and protecting their interest only to the extent of foreclosure value. According to the authors, this recommendation has no regard for the fact that cash flow loans are predicated on a sale of the business as a going concern or the practical difficulty in attempting to choose a value based on a hypothetical sale.
A Tale of Two LLPS Sets a New Precedent
February 28, 2015
A look at the bankruptcy court's most recent ruling in the Dewey & LeBoeuf bankruptcy. The ruling establishes a bold, new, and much-needed precedent as to the interaction between state laws of business organization, and important provisions of the Bankruptcy Code.
Creditors' Rights in Chapter 11: Use Them or Lose Them
February 28, 2015
The old adage "use it or lose it" applies at every stage of a Chapter 11 case.Nowhere is this seemingly harsh ' but essential ' reality more evident than in the ongoing saga of a group of three holders of gift cards, totaling $225.00 in value, issued by the now-defunct Borders bookstore chain.
Trademark Licensees May Be Able to Have Their (Cup)Cake and Eat It, Too
January 31, 2015
Following a recent line of high-profile and notable decisions that have sought to protect the rights of trademark licensees in a trademark licensor's bankruptcy, the United States Bankruptcy Court for the District of New Jersey has issued a significant decision that, for the first time, extends the protections of Section 365(n) of the Bankruptcy Code, 11 U.S.C. ' 365(n), to trademark licensees on equitable grounds.
