LIBOR and Bankruptcy in the Current Market
June 26, 2008
Distressed companies and those in bankruptcy nearly always require some amount of loans to fund their recovery, exit from bankruptcy, or sale. What happens when those loans are not available, too expensive, or too risky in the eyes of the capital market? Combine that with volatility in The London Interbank Offer Rate, 'LIBOR,' the rate at which money is lent to other banks, and the terms, in particular, interest rates, that are offered to these distressed borrowers, are constantly in change.
The Enterprise Bankruptcy Law of the People's Republic of China
June 26, 2008
In August 2006, after some 12 years of preparation, the Enterprise Bankruptcy Law ('EBL') of the People's Republic of China ('PRC') was signed into law by President Jintao Hu. The new law went into effect on June 1, 2007. The EBL supersedes the 1986 Interim Enterprise Bankruptcy Law, as well as all or a part of a variety of other regimes and statutes, including the People's Republic of China Company Law and the Foreign Invested Enterprise Liquidation Procedure. This article is a consolidated analysis of some of the significant features of the EBL.
How 'Bout Those Broncos!
May 28, 2008
Suppose a husband in a pending divorce action is a big football fan and has four season tickets to his team. He waited over 20 years on the waiting list to have access to these tickets. Now that his time has come, he finally has the right to buy tickets every year to see his favorite team play. However, he is also in the midst of a bitterly contested divorce, and these tickets are now at issue. What happens next?
On the Move
May 27, 2008
Who's going where; who's doing what.
Bankruptcy Filings in Calendar Year 2007
May 27, 2008
The vast majority of petitions filed during 2007 were non-business cases; in fact 96.7% of all cases filed in 2007 were non-business. In calendar year 2007, there were 822,590 non-business cases filed, a 38% increase from the 597,965 non-business bankruptcy filings in 2006. By contrast, in 2005, non-business filings totaled 2,039,214.Here's the breakdown.
Rediscovering Chapter 9 As Financial Woes of Municipalities Escalate
May 27, 2008
Last month, the authors discussed the fact that even though Chapter 9 of the Bankruptcy Code has been in effect for over 30 years, fewer than 100 Chapter 9 cases have been filed during that time. Municipal bankruptcy cases ' or, more accurately, proceedings involving the adjustment of a municipality's debts ' are a rarity, compared with reorganization cases under Chapter 11. This, however, may be changing. The authors now continue that discussion.
No Stay for the Weary
May 27, 2008
The Delaware Court of Chancery recently emphasized that issues of corporate governance remain the purview of the state of incorporation, notwithstanding the filing of a bankruptcy petition and the accompanying automatic stay, which ordinarily acts to halt proceedings against the debtor.
The Benefits Priority Cap of ' 507(a)(5)
May 27, 2008
Thirty years after the enactment of BAPCPA, there are still unresolved issues that arise from time to time under the pre-BAPCPA Bankruptcy Code. One such issue involves the proper application of the statutory priority cap found in Bankruptcy Code ' 507(a)(5), including its interplay with ' 507(a)(4).
Rediscovering Chapter 9
April 25, 2008
Even though Chapter 9 of the Bankruptcy Code has been in effect for over 30 years, fewer than 100 cases have been filed during that time. Municipal bankruptcy cases ' or, more accurately, proceedings involving the adjustment of a municipality's debts ' are a rarity, compared with reorganization cases under Chapter 11.
A Quagmire of Obligations
April 25, 2008
Pending in bankruptcy court in Corpus Christi, TX, is <i>In re ASARCO, LLC, et al.</i>, the largest environmental bankruptcy case ever filed. This article explores the ramificatinos of the case.
