Bankruptcy

This Note provides practical advice to purchasers of distressed assets in section 363 bankruptcy sales.

This Note describes the bankruptcy-related provisions commonly found in intercreditor agreements used in second lien financing arrangements, including waivers of bankruptcy rights by second lien lenders and the enforceability of these waivers in bankruptcy.

This Note discusses the role of official creditors' committees in Chapter 11 cases, including how they are formed, organized and operate and  their powers and duties. This Note also discusses the advantages and disadvantages of serving on a creditors' committee, and the application of revised Federal Rule of Bankruptcy Procedure 2019 to official committees.

This Note discusses the parameters of credit bidding in section 363 sales, the grounds on which credit bids can be attacked, intercreditor issues related to credit bidding and strategies for minimizing credit bidding risks.

This Note discusses creditors' setoff rights in bankruptcy, including the conditions to exercising setoff rights and the limitations on these rights. This Note also discusses how the setoff rights of certain counterparties are protected by the Bankruptcy Code's safe harbor provisions, the waiver of setoff rights, the distinction between prepetition setoff and postpetition setoff, how to structure transactions to maximize setoff rights and strategies for creditors holding setoff rights.

This Note provides an overview of revised Federal Rule of Bankruptcy Procedure 2019, including the parties it covers, its initial and supplemental disclosure requirements, consequences of noncompliance and its practical implications.

This Note describes strategic drafting techniques non-debtors can use to improve and protect their positions under executory contracts and leases. This Note also discusses strategies non-debtors can apply when dealing with financially troubled counterparties, both before and during bankruptcy proceedings.

This Note discusses the circumstances under which a creditor should file a proof of claim in a Chapter 11 bankruptcy case, best practices for preparing a proof of claim and grounds for objecting to and disallowing claims.

A discussion of the differences between ad hoc committees and official committees in bankruptcy.

A discussion of the differences between preferences and fraudulent conveyances in bankruptcy.

A discussion of the differences between voluntary and involuntary bankruptcy.

This Note contains a discussion of fraudulent conveyance issues of concern to lenders and private equity sponsors in common business transactions, such as leveraged buyouts, intercorporate guaranties and dividend recapitalizations This Note also discusses the consequences of a successful fraudulent conveyance action and provides drafting and structuring strategies for limiting exposure to fraudulent conveyance liability.

This document discusses the dispute surrounding the reinstatement of Charter Communciations' senior debt under its plan of reorganization and provides a summary of the key litigated issues.

This document discusses the dispute surrounding certain payments made and liens granted by TOUSA, Inc.'s subsidiaries, which their unsecured creditors sought to recover in bankruptcy proceedings, and provides a summary of key litigated issues and practical implications indicated by the litigation.

This Note discusses the key differences between asset purchase agreements used in section 363 sales and those used for sales outside of bankruptcy, including the different drafting and negotiating considerations involved.

This Note discusses the elements of an equitable subordination claim and how this doctrine applies to lenders. This Note also provides strategies and other considerations for lenders to avoid or minimize equitable subordinaton risk.

This Note highlights potential bankruptcy and insolvency issues that parties and their counsel should take into account when forming a limited liability company (LLC) under state law. These issues affect the drafting of key provisions in an LLC operating agreement including management and ownership rights and remedies, as well as what the parties should do if an insolvency arises or a bankruptcy proceeding is initiated against the LLC or one or more of its members.

This Note provides a background on the bankruptcy remedy of adequate protection, including its purpose, what interests are protected and who is entitled to request it. This Note also discusses the circumstances under which adequate protection is required, what it may consist of, how and when loss of collateral value is measured and strategies for lenders and other secured creditors to preserve and maximize their adequate protection rights.

This Note provides an overview of the requirements to reinstate a defaulted and accelerated prepetition loan under a Chapter 11 plan of reorganization, practical implications and recent court decisions on reinstatement.

This Note summarizes substantive consolidation and the various standards used by bankruptcy courts in determining whether it is appropriate.

This Note discusses Chapter 11 gift plans, including the origination and development of the gifting doctrine under In re SPM Manufacturing, Corp., the conflict between gift plans and the cramdown provisions of the Bankruptcy Code and indicators of a successful gift plan. This Note also discusses the practical implications of the recent decision in In re DBSD, North America, Inc. and summarizes other notable decisions on gift plans.

This Note provides an overview of the prepackaged bankruptcy process, including how "prepacks" are implemented, when they are most useful, their advantages and disadvantages relative to traditional Chapter 11 bankruptcy cases and out-of-court restructurings and how their use has been affected by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

A discussion of collateral allocation mechanism (CAM) exchange provisions including links to CAM provisions in loan agreements. Additional precedents are no longer being added to this Note.

A standard reclamation complaint to be used in connection with making a reclamation claim under section 546(c) of the Bankruptcy Code. This Standard Document has integrated notes with important explanations and drafting tips.

A pre-negotiation letter is commonly used in commercial real estate loans when the borrower is either in default or about to be in default under its loan. It provides a framework for the parties to conduct preliminary discussions for either a loan modification or a workout, depending on the particular circumstances of the loan. This Standard Document has integrated drafting notes and important explanations and drafting tips.

This is a standard form of intercreditor agreement to be used in connection with first and second lien loan agreements that are secured by the same collateral. This Standard Document reflects the limited negotiating strength of second lien lenders in a so-called "silent second lien" transaction.  This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

A Standard Clause for corporate loan agreements or security agreements specifying the agent's and individual lenders' rights to credit bid at sales of collateral. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

This Standard Clause reflects the intention of the parties that the agreement is of a certain financial nature, allowing it to be terminated by the non-debtor counterparty and unassignable by the debtor in bankruptcy. This Standard Clause has integrated notes with important explanations and drafting tips.

This Standard Clause is a limitation of liability clause (or savings clause) which limits the amount of liability under a guaranty to an amount which will not be avoidable as a fraudulent transfer under the Bankruptcy Code or the applicable state fraudulent transfer law. This Standard Clause has integrated notes with important explanations and drafting tips.

This flowchart illustrates the step-by-step analysis provided by the US Bankruptcy Court for the Southern District of New York in In re Chemtura for the treatment in bankruptcy of make-whole and no-call provisions found in bond indentures and loan agreements.

A timeline showing the stages of the various types of Chapter 11 cases.

A timeline showing the typical progression of a prepackaged Chapter 11 bankruptcy case.

A timeline showing the typical progression of the Chapter 11 plan process.

A discussion of the opposing views concerning the American Bankruptcy Institute's (ABI) initiative to dramatically reform Chapter 11 of the Bankruptcy Code.  

A summary of recent developments in DIP financing. Kenneth Steinberg of Davis Polk & Wardwell LLP contributed to this Article. 

This table is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

An expert Q&A with Paul Harner of Latham & Watkins LLP on the implications of the Second Circuit's decision in In re DBSD North America, Inc. on gifting arrangements and vote designation in plans of reorganization.

A Q&A guide to restructuring and insolvency law in Austria. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. For a full list of recommended restructuring and insolvency law firms and lawyers in Austria, please visit PLC Which lawyer? This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructurehandbook.

A Q&A guide to restructuring and insolvency law in Israel. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Turkey. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructurehandbook.

This Article reviews recent court decisions that have limited or restricted important rights of creditors and explains how creditors can avoid these pitfalls.

An in-depth analysis of a landmark derivatives case relating to withholding of payment by a non-defaulting party under Section 2(a)(iii) of the ISDA Master Agreement. Reprinted from the Futures & Derivatives Law Report. Copyright © 2010 Thomson Reuters. Posted with permission. For more information about this publication please visit www.west.thomson.com.

A Q&A guide to restructuring and insolvency law in Denmark. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructurehandbook.

A Q&A guide to restructuring and insolvency law in Greece. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructurehandbook.

An article on the challenges of buying assets from an insolvent company and the advantages and disadvantages of a section 363 sale. Click here to view the full text.

This Article discusses the impact of the decision in Clear Channel Outdoor, Inc. v. Knupfer on section 363(m). Click here to view the full text.

This Article discusses new strategies for stalking horses in section 363 bankruptcy sales.

An overview of the US bankruptcy code, including an outline of Chapters 7, 11 and 15 of the Bankruptcy Code and an overview of involuntary proceedings, creditor status in bankruptcy, and parent, director and lender liability. This article is part of the PLC US Special Report, which was published to mark the launch of PLC's first US services.

This Article explores key assumptions underlying the second-lien market, the rights of secured creditors and the extent to which the claims of second-lien lenders are actually secured, the concept of lien subordination, rights typically waived by second-lien lenders in intercreditor agreements, and the enforceability of these waivers.

This tool enables subscribers to search the Country Q&A in the Restructuring and Insolvency multi-juridictional guide by question and jurisdiction. Simply select the questions and the jurisdictions that you are interested in and click the "submit" button. Please note that the law stated dates for each jurisdiction covered may not be the same. To check the law stated dates for each jurisdiction, please visit the individual article.

The US Bankruptcy Court for the Southern District of Florida held in In re National Litho, LLC that conversion from a Chapter 11 to a Chapter 7 bankruptcy proceeding does not subordinate a DIP lender's pre-conversion section 364(c)(1) superpriority claim to Chapter 7 administrative expenses. 

The US Bankrtupcy Court for the Western District of Michigan held in In re Jalal Parirokh that avoidance actions are not property of the estate, and therefore are not subject to sale under section 363(b) of the Bankruptcy Code.

The US Bankruptcy Court for the District of Delaware in In re School Specialty, Inc. enforced a make-whole provision over the objections of the creditors' committee, yielding an amount equal to $23.7 million, representing 37% of the outstanding principal of the loan.

The US Bankruptcy Appellate Panel of the Ninth Circuit held in In re Village at Lakeridge, LLC that a non-insider's purchase of an insider's claim does not in and of itself transfer to the purchaser insider status without further facts supporting this conclusion.

The US Bankruptcy Court for the Northern District of New York held in In re Tougher Industries, Inc. that the term "interest" as used in section 363(f) of the Bankruptcy Code should be defined broadly.

The US Court of Appeals for the Fourth Circuit in Campbell v. The Hanover Insurance Co. (In re ESA Environmental Specialists, Inc.), affirmed a bankruptcy court decision which held that the new value defense applied to protect a debtor's use of loan proceeds to cash collateralize a letter of credit within 90 days of bankruptcy from a preference attack under section 547(b) of the Bankruptcy Code.

The US Court of Appeals for the Fifth Circuit held in Fire Eagle L.L.C. v. Bischoff (In re Spillman Development Group, Ltd.) that the creditor's credit bid for a debtor's assets resulted in full payment of the senior debt and extinguished any deficiency claims against the guarantors of the debt.

The US Court of Appeals for the Seventh Circuit held in In re Castleton Plaza, LP that an equity investor may not evade the absolute priority rule by arranging for new value to be contributed by an insider, and therefore receiving equity in the reorganized debtor, if an objecting creditor remains unpaid and other potential investors are not given the same investment opportunity.

The US Bankruptcy Court for the Eastern District of New York held in In re Brown Publishing Co. that a debtor may not retain, as liquidated damages, the good faith deposit of a successful bidder at a section 363 sale who ultimately fails to close the transaction, if the sale procedures provide that the debtor may seek additional actual damages, but no actual damages were incurred.

On January 17, 2013, the US Bankruptcy Court for the Southern District of New York in US Bank Trust National Ass'n. v. American Airlines, Inc. (In re AMR Corp.) rejected payment of a make-whole premium following acceleration and maturity based on the plain language of the indentures.

A discussion of the increased risks that can arise in bankruptcy when lenders exercise excessive control over the debtor, including risks relating to preference liability and equitable subordination. This update includes links to relevant resources that examine these issues.

The US Bankruptcy Court for the Southern District of New York approved what may be the first Sharia-compliant DIP financing package in US bankruptcy court.

On October 11, 2012, the US Bankruptcy Court for the Northern District of Texas issued an opinion for its September 27, 2012 Order that granted a temporary injunction to Fibertower Network Service Corporation and enjoined the FCC from terminating its spectrum licenses until a final non-appealable order regarding the status of the licenses had been entered.

The US Court of Appeals for the Second Circuit issued a summary order affirming an order of the US Bankruptcy Court for the Southern District of New York in an adversary proceeding relating to In re CIT Group Inc. The Second Circuit affirmed the dismissal of the debtor's attempt to subordinate its former corporate parent's breach of contract claim under section 510(b) of the Bankruptcy Code on the ground that it arose from the purchase or sale of the debtor's securities. 

The US Bankruptcy Court for the District of Arizona in In re Bataa/Kierland, LLC denied a creditor's motion to designate another creditor's acceptance of the debtor's proposed Chapter 11 plan. The bankruptcy court ruled that it was not an ulterior motive for a creditor to want the debtor's reorganization to succeed so that it could continue to do business with the debtor. It also found that the debtor's creation of a potentially accepting class in contemplation of bankruptcy was permissible and that the debtor did not solicit or procure the creditor's vote in bad faith.

In Lewis Brothers Bakeries Inc. v. Interstate Brands Corp., the US Court of Appeals for the Eighth Circuit affirmed a district court ruling that a trademark license agreement between a debtor-licensor and non-debtor licensee qualified as an executory contract under section 365 of the Bankrupcty Code and therefore could be assumed by the debtor. The court found that both parties to the agreement maintained at least one material obligation under the agreement.

The US Bankruptcy Court for the Western District of Pennsylvania held that funds advanced from creditor to a debtor must be recharacterized as an equity contribution despite the creditor's testimony claiming an intent to classify the funds as debt.

The US District Court for the Southern District of Mississippi, Southern Division reversed the June 7, 2011 opinion of the US Bankruptcy Court for Southern District of Mississippi in the case of Acceptance Loan Co., Inc. v. S. White Transportation, Inc. (In re S. White Transportation, Inc.). The District Court ruled that receipt of notice is insufficient to satisfy the requirement that the creditor participate in the reorganization to avoid the creditor's lien.

The US Supreme Court issued an opinion in the case of RadLAX Gateway Hotel, LLC v. Amalgamated Bank, finding that debtors must allow secured creditors the right to credit bid in a sale of collateral under a plan of reorganization.

In a blow to lenders, the Eleventh Circuit Court of Appeals reversed a district court ruling and affirmed the decision of a bankruptcy court in In re TOUSA that liens granted by TOUSA's subsidiaries to secure TOUSA's debt constituted fraudulent transfers under section 548 of the Bankruptcy Code. The Lenders' appeal to a prior ruling by the bankruptcy court that questioned the enforceability of saving clauses, which was stayed pending the Eleventh Circuit's decision, may now proceed.     

The US Bankruptcy Court for the District of Delaware held in In re Tribune that subordination agreements otherwise enforceable under section 510(a) of the Bankruptcy Code should not be considered in the section 1129(b) unfair discrimination analysis for confirming cramdown plans.

The US Bankruptcy Court for the Southern District of New York held in an adversary proceeding relating to the Lehman Brothers bankruptcy cases that the safe harbor contained in section 546(e) of the Bankruptcy Code prevents the Lehman bankruptcy estate from avoiding prepetition collateral transfers made to JPMorgan Chase under various trading contracts, lending arrangements and as Lehman's clearing bank.

The US Bankruptcy Court for the Southern District of New York ruled in a case concerning the enforceability in bankruptcy of loan agreement interest provisions that required the debtor to pay default interest and a late payment fee following an event of default under the loan agreement.

The US Bankruptcy Court for the Northern District of Illinois issued an opinion in the Chapter 11 bankruptcy case of In re ShoreBank Corp., ruling that the US Trustee does not need to reconstitute the creditors' committee despite a conflict of interest of certain committee members with the interests of the general body of unsecured creditors.

A new group of investors in certain synthetic CDOs issued by affiliates of Lehman Brothers filed suit in the US Bankruptcy Court for the Southern District of New York seeking to enforce, on grounds of judicial comity, conditional payment provisions that were ruled unenforceable by the same court in 2010.

The US Bankruptcy Court for the Southern District of New York released a decision in an adversary proceeding relating to In re Tronox Incorporated. The court held that section 550(a) of the Bankruptcy Code does not impose a cap on the recovery in fraudulent transfer claims.

The Eleventh Circuit held that the IRS waived its deficiency claim when it filed a proof of claim which catagorized its entire claim as secured but did not note any unsecured claims.

The US Bankruptcy Court for the District of Delaware, in Friedman's Inc. v. Roth Staffing Cos., L.P., holds that the filing of a bankruptcy petition "fixes" a preference analysis as of the petition date.

Revised Federal Rule of Bankruptcy Procedure 2019 governing the disclosure of certain information by official and unofficial committes went into effect December 1, 2011.

On October 31, 2011, the US Bankruptcy Court for the District of Delaware rejected competing plans of reorganization, one proposed by Tribune Company, the creditors' committee and certain senior lenders and the other by certain holders of notes issued before the 2007 leveraged buyout of Tribune Company.

On October 5, 2011, the Delaware Bankruptcy Court issued an opinion in In re Lambertson Truex, LLC, providing clarification on the meaning of "dominion and control" for purposes of the mere conduit defense to an avoidance action under section 550 of the Bankruptcy Code.

On September 21, 2011, the US Court of Appeals for the Third Circuit held in In re: Lemington Home for the Aged that under Pennsylvania law, "deepening insolvency" supports an independent cause of action and directors of insolvent corporations owe duties directly to the corporation's creditors, both in contrast with Delware law.

On September 13, 2011, a bankruptcy judge for the US Bankruptcy Court for the District of Delaware held that hedge fund creditors may have become insiders and may have a fiduciary duty to other creditors because they hold a blocking position in Washington Mutual's debt structure.

The US Court of Appeals for the Fifth Circuit, in In re ASARCO, L.L.C., upheld expense reimbursement for non-stalking horse bidders under the business judgment standard incorporated into section 363(b) of the Bankruptcy Code.

The US Bankruptcy Court for the Southern District of New York confirmed that, even though a security interest may not be granted in an FCC license, a valid lien may be granted on the economic value of that license.

The US Court of Appeals for the Ninth Circuit delivered an opinion in In re Flamingo 55, Inc., affirming the bankruptcy court's order denying the appellants' subrogation claims against the debtor under section 509(a) of the Bankruptcy Code.

An update on the US Bankruptcy Court for the Western District of Texas' decision in the bankruptcy proceeding of Seda France, Inc., holding that an unsecured creditor was not entitled to postpetition legal fees arising under a prepetition contract with Seda, even though Seda's confirmed Chapter 11 plan paid all unsecured creditors in full.

An update on the US Bankruptcy Court for the Southern District of New York's decision in the bankruptcy proceeding of General Growth Properties, Inc., holding that the ipso facto provision in a credit agreement was effective to trigger the lenders' right to receive postpetition interest at the contractual default rate, without the need for the lenders to take affirmative action to accelerate the loan.

An update on the US Court of Appeals for the Second Circuit's decision in an adversary proceeding relating to the Enron bankruptcy. The Second Circuit held that an issuer's premature redemption of its commercial paper, through the Depository Trust Company, constitutes a "settlement payment" under the Bankruptcy Code without regard to extrinsic facts about the nature of the transactions, the motive behind the transactions or how the payments are made.

An update on a Lehman Bankruptcy Court decision denying defendant Ballyrock's motion to dismiss Lehman's claims that a provision in a CDO-related swap agreement operates as a prohibited ipso facto flip clause.

An update on the US Court of Appeals for the 11th Circuit's decision in In re: Winn-Dixie Stores, Inc., affirming that the doctrine of res judicata precludes creditors from amending their claims after confirmation of a plan of reorganization, absent a compelling reason for the delay. The decision highlights the finality of confirmed bankruptcy plans.

An update on a decision from the US District Court for the District of Arizona holding that a senior creditor could vote on behalf of a junior creditor on a debtor's plan of reorganization under a subrogation clause in a subordination and intercreditor agreement.

An update on In re TOUSA, in which the US District Court for the Southern District of Florida affirmed the decision of the US Bankruptcy Court for the Southern District of Florida, holding that the lenders' liens on collateral granted under an existing revovling creadit agreement were not subject to fraudulent conveyance attack under section 548 of the Bankruptcy Code, even though the agreement was amended and the revolver was drawn on after the borrower and certain of its subsidiaries were allegedly insolvent.

An update on In re TOUSA where the US District Court for the Southern District of Florida (District Court) quashed the decision of the US Bankruptcy Court for the Southern District of Florida (Bankruptcy Court) which held that TOUSA, Inc.'s $420 million payment to certain of its lenders constituted a fraudulent transfer under section 548 of the Bankruptcy Code. Calling the Bankruptcy Court's decision "clearly erroneous," the District Court helped affirm the validity of corporate lending practices based on credit support from subsidiary guarantors.

An update on the US Court of Appeals for the Second Circuit's decision in DISH Network Corp. v. DBSD North America, Inc. (In re DBSD North America, Inc.), affirming the bankruptcy court's order to designate a creditor's vote and reversing its order that allowed gifting in violation of the absolute priority rule.

An update on a ruling by the US Bankruptcy Court for the Southern District of New York in In re Mesa Air Group, Inc. that denied standing to a creditor to object to the confirmation of the debtors' amended plan of reorganization because the creditor failed to comply with the transfer notice requirements of the Bankruptcy Rules and a trading order in the debtors' Chapter 11 case.

A new practice note, Corporate restructuring under the US Bankruptcy Code: overview has been published.

An update on a decision from the Southern District of New York Bankruptcy Court denying confirmation of Quigley Company, Inc.'s reorganization plan and designating the votes of an entire category of voters.

An update on the Accuride litigation regarding Rule 2019 disclosures.

An update on the Delaware Bankruptcy Court's decision in In re Capmark Financial Group Inc. approving a settlement between the debtors and the secured lenders, and denying fraudulent and preferential transfer claims as moot.

An update on the US Bankruptcy Court for the District of Delaware issuing orders in In re Thompson Publishing Holding Co., Inc. and In re American Safety Razor Company, LLC revising debtors' proposed bidding procedures in section 363 sales to alter the balance of control over the auction process between debtors, stalking horse bidders and other potential bidders.

An update on a decision in the Bayou Group, LLC bankruptcy proceedings clarifying the standard for the good faith defense to a fraudulent conveyance action under Bankruptcy Code section 548(c).

An update on the US Bankruptcy Court for the Northern District of Illinois' decision in In re River Road Hotel Partners, LLC rejecting the debtors' bid procedures motion that prohibited credit bidding in a sale of assets conducted under a plan of reorganization.

An update on the Innkeepers USA Trust bankruptcy proceedings and the bankruptcy court's rejection of a preferred shareholders' bid to form an official shareholder committee.

An update on a series of preference lawsuits filed by Lehman Brothers Holdings, Inc. (Lehman) against dozens of special purpose vehicles, 50 banks, hedge funds and investment firms in which Lehman claims that "flip" clauses in certain collateral-backing notes cost its bankruptcy estate and its creditors more than $3 billion. 

An update on the Capmark Financial Group, Inc. bankruptcy proceedings, in which the creditors' committee filed a motion to authorize it to prosecute claims that prepetition exchanges of unsecured debt for secured debt constitutued fraudulent transfers and preferences.

A new article, The Lehman client money judgment: the Court of Appeal overturns key aspects of the High Court decision, written by Patrick Buckingham, Stephen Gale and Laura Reynolds of Herbert Smith LLP considers the implications of the decision of the Court of Appeal in CRC Credit Fund Limited and others v GLG Investments Plc Sub-Fund: European Equity Fund and others [2010] EWCA Civ 917 (2 August 2010).

An update on the enforceability of an intercreditor agreeement in the bankruptcy case of In re TCI 2 Holdings, LLC in the Bankruptcy Court for the District of New Jersey.

An update on the Committee on Rules of Practice and Procedure of the Judicial Conference's approval of amendments to Federal Rule of Bankruptcy Procedure 2019.

An update on a decision by the US Bankruptcy Court for the Southern District of New York holding that the date of commencement of the Securities Investor Protection Act (SIPA) liquidation of Lehman Brothers Inc. (LBI) is the correct date to use when determining the value of LBI SIPA claims.

An update on the auction of the assets of Philadelphia Newspapers.

An update on the US District Court for the Southern District of New York's (SDNY's) decision in DISH Network Corp. v. DBSD North America, Inc. (In re DBSD North America, Inc.), upholding the bankruptcy court's order disqualifying the vote against a confirmation plan of "strategic investor" DISH Network.

An update on a Reuters report about companies selling high-yield bonds to fund bankruptcy exits.

An update on the Philadelphia News bankruptcy case in the US Court of Appeals for the Third Circuit.

An update on a comment letter by the LSTA and SIFMA on proposed amendments to Federal Rule of Bankruptcy Procedure 2019.

An update on the Delaware Bankruptcy Court's decision holding that the Six Flags informal committee of noteholders is not a committee for the purposes of Bankrupcy Rule 2019.

An update on the protective order from a Delaware Bankruptcy Court allowing Six Flags noteholders trying to take over part of the company to keep information on their holdings confidential in the bankruptcy of Six Flags' parent company.

This update looks at the trends in DIP lending and exit financing that have emerged during the 2009 bankruptcy cycle and makes predictions for 2010.

An update on the WaMu bankruptcy in the Bankruptcy Court for the District of Delaware.

An update on a ruling by the US Bankruptcy Court for the Southern District of New York granting the debtor, Extended Stay Inc., access to the identities of certificate holders of a $4.1 billion CMBS trust.

An update on a decision issued by the US Court of Appeals for the Second Circuit allowing unsecured creditors to recover postpetition attorneys' fees that were authorized by a prepetition contract.

An update on the Lehman bankruptcy proceedings.

An update on a ruling in the Lehman Brothers bankruptcy case that is expected to make it more difficult for companies to keep derivatives contracts with bankrupt or insolvent counterparties open without making payments under those contracts.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the General Growth Properties, Inc. bankruptcy proceedings.

An update on a statement by Representative Barney Frank (D-MA) warning that Congress may revive proposed legislation to allow the cramdown of certain mortgage modifications in bankruptcy proceedings.

An update on 16 Hong Kong banks spending up to $810 million to buy back Lehman Brothers-backed minibonds as part of a settlement with investors.

An update on a decision by the Seventh Circuit to sustain an objection to a claim filed by a creditor 43 minutes after the deadline for filing proofs of claim.

An update on the bankruptcy case stemming from Washington Mutual's (WaMu) seizure by the FDIC and its eventual takeover by JPMorgan Chase.

An update on the Chapter 11 bankruptcy of LyondellBasell Chemical Company.

An update on the Chrysler bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the General Growth Properties, Inc. bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the views of credit union and industry groups about the mortgage "cramdown" bill (Helping Families Save Their Homes Act of 2009).

An update on the lawsuit initiated by JPMorgan against Washington Mutual and the FDIC to get a declaration that its $1.9 billion purchase of most of WaMu's assets was proper.

An update on the Lehman bankruptcy proceedings.

An update on the spinout of Lehman Brothers' private equity firm, Lehman Brothers Merchant Banking.

An update on the approved $689 million settlement between Barclays and Lehman Brothers.

An update on the Lehman bankruptcy proceedings.

An update on a report by Moody's Investors Service on the US food industry.

An update on the Lehman bankruptcy proceedings.

An update on Lehman Brothers reducing the unsecured liability it holds to $200 billion.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the purchase of two Lehman private equity funds by Reinet Investments.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the amount of bankruptcies in the US in 2008.

An update on statements issued by several securities and financial industry groups opposing proposed cram down legislation to allow bankruptcy judges to modify mortgage loans.

An update on the American Banker's Association's statement opposing the proposed mortgage cram-down legislation.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Bernard L. Madoff Investment Securities bankruptcy proceedings.

An update on a decision in the Bankruptcy Court for the Southern District of New York to grant Glitnir Bank hf protection under Chapter 15 of the Bankruptcy Code.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman Brothers bankruptcy case.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

A legal update on the Lehman bankruptcy proceedings.

An update on the Tribune Company's bankruptcy.

An update on the Lehman bankruptcy proceedings.

An update on the bankruptcy sale of Lehman Brothers' investment management division, Neuberger Berman.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

A legal update on the Lehman bankruptcy proceedings.

A legal update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

A Q&A guide to restructuring and insolvency law in Guernsey. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in the UK (England and Wales). The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

Debt-equity swaps are progressively being viewed in France as an efficient way of reducing the debt level of an excessively leveraged company. This chapter considers how debt-equity swaps can be used out of court, as well as how they can be used in insolvency proceedings. This is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

With the recent marked increase in real estate portfolio investment in Germany, lenders increasingly need in-depth specialist advice on enforcement routes and are often unable to handle enforcements in-house. This chapter provides an overview of the alternative enforcement routes available and outlines some of the insolvency law considerations that may be of relevance where a property-owning borrower is not resident in Germany. This is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

This article examines the principles that the Canadian courts will apply to determine the centre of main interest (COMI) for a debtor with operations in more than one jurisdiction. The determination is an important one, since it will effectively decide whether the relief of a stay of proceedings granted under section 48 of the Companies' Creditors Arrangement Act is automatically available, or only given at the court's discretion. This is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Australia. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Brazil. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in the Cayman Islands. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Cyprus. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Germany. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in India. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Japan. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Mexico. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Poland. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in South Africa. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Spain. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

A Q&A guide to restructuring and insolvency law in Switzerland. The Q&A gives a high level overview of the most common forms of security granted over immovable and movable property; creditors' and shareholders' ranking on a company's insolvency; mechanisms to secure unpaid debts; mandatory set-off of mutual debts on insolvency; state support for distressed businesses; rescue and insolvency procedures; stakeholders' roles; liability for an insolvent company's debts; setting aside an insolvent company's pre-insolvency transactions; carrying on business during insolvency; additional finance; multinational cases; and proposals for reform. To compare answers across multiple jurisdictions, visit the Restructuring and insolvency Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

This article briefly outlines the restructuring and insolvency procedures that Swedish car automotive business SAAB has been through since the 2008 downturn of the global economy. In particular it considers the company's first restructuring; the voluntary liquidation that SAAB was entered into; the company's second restructuring; and the bankruptcy process that SAAB is currently going through. This article is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

This article outlines the peculiarities of the Spanish system regarding foreign investors buying assets from insolvent companies. Specifically, this article examines the increase in and diversification of insolvencies; the background on the insolvency landscape (including the Insolvency Act, subject of the offer and judicial process); successor liability and timing of the acquisition. This article is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.

An update on the settlement reached by Lehman Brothers Holdings Inc. with BNY Corporate Trustee Services Ltd. and Perpetual Trustee Co. Ltd. in the "flip-clause" cases.

An update on the status of the claims made by the unsecured creditors' committee against the prepetition lenders in In re Fedders North America, Inc.