On the Move
February 19, 2009
Who's doing what; who's going where.
When Bankruptcy And Equity Collide
February 19, 2009
In <i>Ades and Berg Group Investors v. Breeden</i> (<i>In re Ades and Berg Group Investors</i>), the court of appeals affirmed a decision below refusing to impose a constructive trust on proceeds from a settlement of reinsurance claims that were paid to a Chapter 11 debtor. According to the Second Circuit, "retention by the bankruptcy estate of assets that, absent bankruptcy, would go to a particular creditor is not inherently unjust."
Second Circuit Upholds Professional's Pre-Approved Fixed Fee Award
February 19, 2009
Financial advisers, investment bankers, lawyers and other professionals in reorganization cases will be happy with a decision of the U.S. Court of Appeals for the Second Circuit handed down on Jan. 6, 2009: <i>In re Smart World Technologies, LLC.</i>
Delaware Bankruptcy Court Denies Multi-Party Setoff
February 19, 2009
<i>In re SemCrude, L.P.</i> is a departure from the long-standing assumption that a multi-party netting agreement among affiliates would be upheld in bankruptcy if enforceable under applicable non-bankruptcy law. This article provides an analysis of the decision, the procedural status and its potential impact, and recommendations for minimizing the potential negative implications.
Debt Forgiveness: Watch Out for the Tax Consequences
January 29, 2009
When drafting a property settlement agreement that involves debt forgiveness (<i>i.e.</i>, foreclosure, short sale, reduction in credit card debt), it is critical that matrimonial attorneys be aware of the tax consequences because the financial impact on a client can be enormous.
On the Move
January 28, 2009
Who's going where; who's doing what.
Can the Claims of Individual Creditors Be Assigned to a Litigation Trust for Prosecution?
January 28, 2009
Last month, we asked the question: Can a plan provide that the securities claims ' which are not estate causes of action because they belong to the bondholders individually, not to the company ' will be assigned to a trust so that the trust can efficiently litigate these claims and distribute the proceeds thereof to the bondholders? Herein, a continuation of our discussion.
Score One for the Good Guys
January 28, 2009
On countless occasions, the Supreme Court has proclaimed the longstanding axiom that the bankruptcy process is for "honest debtors" only; wrongdoers should never be allowed refuge within the confines of the nation's insolvency law. Often overlooked is the fact that the automatic stay, 11 U.S.C. ' 362(a), a linchpin of modern bankruptcy practice, was likewise carefully constructed so as to not provide a safe harbor for malefactors.
Whose Claim Is It, Anyway?
January 28, 2009
Understanding the courts' treatment of this division of claims (as inconsistent as it is) is essential to a successful litigation strategy, whether on behalf of individual creditors or a trustee.
