Heightened Pleading Standards Apply to Avoidance Complaints
October 26, 2009
Parties to preference and fraudulent transfer actions should pay careful attention to the decision in <i>In re Caremerica, Inc.</i>, where the judge dismissed certain avoidance claims and upheld others asserted by a Chapter 7 trustee. <i>Caremerica</i> provides useful guidance on whether particular elements of a preference or fraudulent transfer claim have been adequately pled.
On the Move
September 29, 2009
Who's doing what; who's going where.
Fresh-Start Reporting
September 29, 2009
Emergence from bankruptcy presents a series of challenges for debtor companies, their creditors and counsel for all interested parties. One of the most significant challenges is financial reporting.
Creditor Committees in 'Meltdown' Chapter 11 Cases
September 29, 2009
Due to a number of forces, most importantly the global recession and the resulting global macroeconomic conditions, creditor committees are now having difficulty in finding their role in many Chapter 11 cases. Many factors, including rapid declines in asset values, means that many secured lenders find themselves holding loans that are vastly under-collateralized.
General Growth Properties
September 29, 2009
To the surprise of many, when General Growth Properties Inc. ("GGP") commenced a Chapter 11 proceeding in April 2009, it caused 166 solvent bankruptcy remote entities that were current on all their indebtedness (the "General Growth SPEs") that each owned a single mall property to also file Chapter 11 petitions.
On the Move
August 24, 2009
Who's doing what; who's going where.
Business Incentives and Property Taxes in Bankruptcy
August 24, 2009
Bankruptcy is a dark cloud on a company's business. However, business incentives and property taxes can be a silver lining by bringing precious value ' such as property tax abatements, sale/use tax exemptions and, in some instances, favorable financing and utility rate reductions ' to help the company on its road to economic recovery.
The Impact of the Credit Crisis on DIP Financing
August 24, 2009
Prior to the global credit pandemic, a company in default or that faced a near-term covenant breach could either obtain relief through waivers and amendments, or refinancings. As the availability of credit shrank, the latter choice was no longer a viable solution. Moreover, a by-product of the frozen credit markets was the unexpected contraction of available debtor-in-possession financing (DIP financing).
File for Chapter 11, Get the First Month's Rent Free?
August 24, 2009
Two recent court opinions challenge the growing consensus that 11 U.S.C. ' 365(d)(3) (the "Statute," or "Section 365(d)(3)") does not require the timely payment of stub rent, which is "the rent for the interim period between the day the order for relief was entered in the bankruptcy case and the end of that month." This article offers an analysis.
DEBT Is a Four-Letter Word
July 29, 2009
Matrimonial attorneys must be able to distinguish elements of leverage risk that are accentuated in today's economy in order to present overvaluing business equity. Here's how.