In Bank of America, N.A. v. Caulkett,[1] the U.S. Supreme Court held that a chapter 7 debtor may not void, or “strip,” a junior mortgage that is completely underwater. To fully appreciate the Supreme Court’s decision, one must understand the
Sites Committee
Committees
An Eastern District of Kentucky Bankruptcy Court recently held that mining leases did not constitute “true lease[s]” for the purposes of 11 U.S.C. § 365 and instead were “conveyance[s] of an interest in real property” governed by 11 U.S.C. § 363.[1] The court issued its decision in two companion chapter 7 cases: In re
Upon the filing of a bankruptcy petition, the automatic stay prohibits creditors from taking any action to collect against debtors or property of the estate during the pendency of the bankruptcy case.[1] Although in certain instances the automatic stay shields honest debtors by
Recently, the U.S. Court of Appeals for the Eleventh Circuit affirmed the dismissal by the U.S. District Court for the Northern District of Georgia of a debtor’s suit against Capital One Bank alleging a violation of the Fair Debt Collection Practices Act (FDCPA) for
It is no secret that the coal industry is struggling. As coal producers face mounting challenges attributable to restrictive environmental regulations, reduced demand for coal, lower spot prices and significant legacy costs, they are compelled to explore cost-cutting measures and restructuring options.
The Business Reorganization Committee has conducted its first formal survey of the members, and the results are in. To no one’s surprise--but to our gratification--the survey confirms that the members of the Committee consist of a geographically diverse group of restructuring-focused professionals from a cross-section of firms as well as academics and bankruptcy judges. The results have been
The holiday season is fast approaching and it would not surprise me if many of you reading this article receive a gift card at some point during the next couple of months. As you look at that gift card, however, you may find your heart sinking as you recall the numerous retail stores that recently filed for bankruptcy.
Your client or borrower is a troubled business that desperately needs to find a buyer or new money, and fast. Somebody suggests that your client/borrower hire an intermediary, but the company already has one “offer” (for purchase, refinance, investment), so is reluctant to hire an investment banker to run a thorough process to find other possible solutions.
In September 2015, the U.S. Court of Appeals for the Third Circuit issued an opinion in In re ICL Holding Co. Inc. that further reinforces the ability to use § 363 sales and settlements to resolve chapter 11 cases.
