Cramdown Interest Rates in Chapter 11
December 31, 2014
In <I>Till v. SCS Credit Corp.</I>, theU.S. Supreme Court applied a formula to determine the appropriate cramdown interest rate with respect to the treatment of secured claims in a Chapter 13 case. However, <I>Till </I> left an unanswered question about how to determine an applicable cramdown interest rate for allowed secured claims in Chapter 11 cases.
Taking a Stand Where Few Have Trodden
November 30, 2014
A "structured dismissal" of a Chapter 11 case following a sale of substantially all of the debtor's assets has become increasingly common. However, only a handful of rulings have been issued on the subject...
'Triggering Event Test'
November 30, 2014
In the preference avoidance context, the insolvency of the debtor is an element of the <I> prima facie</I> case that is not commonly litigated. When it is litigated, however, the scope of a debtor's liabilities can make or break the case.
On the Move
November 02, 2014
Who's going where; who's doing what.
Fifth Circuit Vacates DIP Financing Orders
November 02, 2014
The Fifth Circuit, recently vacated five bankruptcy court and district court Chapter 11 debtor-in-possession (DIP) financing orders due to: 1) the lender's lack of good faith in relying on a third party's shares of stock as collateral; and 2) the bankruptcy court's lack of subject matter jurisdiction to authorize a lien on third party collateral subject to disputed ownership claims.
Spinning Off an Underperforming Division
November 02, 2014
Spin-offs have become a common way for corporations to address underperforming assets. However, if the newly spun-off company runs into financial difficulties, it can be, and often is, second-guessed by creditors and lawsuits can follow.
Employee Noncompete Agreements
November 02, 2014
Due to the low number of reported cases addressing the treatment of noncompete agreements in bankruptcy sales and abundance of conflicting precedents across different states, it is important for attorneys and their clients to anticipate and address these issues early in the bankruptcy sale process.
In the Spotlight: Dealing with Stub Rent After <i>In re Oreck</i>
October 02, 2014
A bankruptcy judge recently held that lessors of a debtor's corporate headquarters were not entitled to administrative expense priority under 11 U.S.C. ' 365(d)(3) for 25 days of unpaid "stub rent" for the period between the Chapter 11 petition and the first post-petition rent payment. A look at <I> In re Oreck</I>/
Bankruptcy Rule 2004
October 02, 2014
Rule 2004 of the Federal Rules of Bankruptcy Procedure (Bankruptcy Rule 2004) is a crucial pre-litigation discovery tool to investigate potential Avoidance Actions ' causes of action under Chapter 5 of the Bankruptcy Code.