A financially troubled corporation confronts many issues, including those raised by federal income tax law. While relevant income tax law is based on a few policies that are relatively simple to summarize, implementation of these policies drives significant complexity.
“It’s like déjà vu all over again.”
— Yogi Berra
Part One of this two-part article reviewed custodially held crypto assets as part of the bankruptcy estate. This installment discusses intrinsic value as a proper valuation method for crypto assets held in exchange custody, factors to consider when calculating the intrinsic value of custodially held crypto assets, and risk-mitigation approaches to preserve asset value.
As we enter the final days of 2022, we are pleased to step back and highlight the work performed by the Young and New Members Committee over the past year. We have loved working with our committee leaders and are truly grateful for their time and commitment to ABI.
We are privileged to have observed many talented predecessors with years of dedicated service to ABI and the Mediation Committee during our time as co-chairs. We also have had the good fortune to work with very competent subcommittee directors. Several of our directors are seasoned hands, while others are relative newcomers.
On April 29, 2022, the ABI Asset Sales Committee announced that the 2021 Asset Sale of the Year was awarded to In re Lighthouse Resources, Inc., et al. (Bankr. D. Del. Consol. Case No. 20-bk-13056- JTD), for the sale of its Wyoming real property assets.
We hope this newsletter finds you well. We welcome our new members and look forward to seeing all of you at our upcoming events.
California faces a common, unfortunate and alarming reality: wildfires. So far in 2022, California has faced approximately 6,739 fires covering almost 365,895 acres. [1] Beyond and often as a consequence of damaging property, land and wilderness, wildfires can also lead to bankruptcy.
Though hints of a digital reality first surfaced as early as 2003 when Second Life made its debut, Facebook’s fall 2021 rebranding — to “Meta” — brought the metaverse to the center stage. That Facebook CEO Mark Zuckerberg would go so far as to change the iconic name of our favorite friend-finding app surely signaled a sense of inevitability that the metaverse would soon pervade our lives.
The Mediation Committee presented several great CLE sessions this summer at regional bankruptcy workshops around the country. In addition, the committee just presented a fantastic CLE program at ABI’s Winter Leadership Conference this past weekend, which we will summarize in the next newsletter.
Advanced Defenses to Avoidance Actions: Understanding Them Can Make All The Difference
Consumer Mortgage Modification Mediation: A Florida Success Story
Hemorrhaging Hospitals: Labor Issues in the Healthcare Insolvency E.R.
Using Technology Effectively: Strategies for Courtroom Success
Trustee Selection in Commercial Bankruptcy Cases: Who Wins the Battle to Control the Estate?
Secured Credit Under the Code and Commission Report
Don’t Restrict My Sale: The Enforceability of Restrictive Covenants and Easements in Assets Sales in Bankruptcy
The Unsecured Trade Creditors Committee's most recent committee call was titled "Tricks of the Trade in Dealing with Executory Contracts," and was moderated by committee Co-chair, Lisa Gretchko. Speakers for this call included David Neumann of Two By Foresight LLC in Cleveland, Ohio, and Shirley Cho of Pachulski Stang Ziehl & Jones LLP in Los Angeles. Please review the attached excerpt from the ABI Commission to Study the Reform of Chapter 11's final report. The full report can be found online at http://commission.abi.org/.
The Asset Sales Committee hosted their most recent committee call on Wednesday, November 12. This call was titled "Bankruptcy Reform Commission’s Consideration of a Proposal to Surcharge Secured Lenders for 363 Asset Sales" and worked to more broadly inform and engage bankruptcy and restructuring professionals about the proposal being considered by the Bankruptcy Reform Commission to assess a charge on secured lenders for 363 asset sales in Chapter 11. Ms. Kathryn A. Coleman of Hughes Hubbard & Reed LLP and Mr. Gregory A.
The ABI’s Unsecured Trade Creditors’ Committee and the ABI’s Secured Credit Committee hosted a joint call featuring Mark Gittelman, Chief Practice Counsel - Asset Recovery at PNC. Mark led a discussion regarding the Bank Secrecy Act and Anti-Money Laundering procedures being utilized by financial institutions.
