Unfinished Business: Swap Participants Gain Ground
April 24, 2009
On Feb. 11, 2009, the United States Court of Appeals for the Fourth Circuit recognized the broad protections afforded to swap agreements under the Bankruptcy Code. Here is a review of the case.
The Era of 'Busted Deals'?
April 24, 2009
The current financial environment has generated an atmosphere where not only are fewer "deals" taking place, but also many deals that are far down the path of consummation may fall apart. It is safe to assume we will continue to see a number of "busted deals."
Trustee Liability and the Curious Case of Maxwell v. KPMG, LLP
April 24, 2009
Last year, Judge Richard A. Posner of the Seventh Circuit Court of Appeals wrote an opinion that sent shockwaves throughout the bankruptcy community, particularly in trustee circles. The shocking part of <i>Maxwell v. KPMG, LLP</i> was not its holding, but its dicta.
Strategy for the Secured Creditor in a Single Asset Real Estate Case
March 30, 2009
The Bankruptcy Code ' 362(d)(3) provides unique grounds for stay relief by permitting a creditor secured by a bankruptcy debtor's "single asset real estate" to pursue an act against the property as early as 90 days after the case's filing. To take full advantage of this provision, however, secured creditors should carefully manage the dual time frames set forth in this Bankruptcy Code section.
How to Identify a Non-Statutory Insider
March 30, 2009
Recently, the Third Circuit Court of Appeals affirmed the lower courts' rulings that a public company was an insider of another non-affiliated public company and was therefore required to return a $188.2 million payment made over four months before the debtor's bankruptcy filing. This decision, illustrates how critical it is for lenders and vendors to conform their conduct toward troubled companies so as to reduce their risk of being deemed non-statutory insiders.
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.
