During 2016, the Asset Sales Committee leadership has strived to provide committee members with access to helpful content and the opportunity to engage in discussions on relevant issues.
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One of the benefits of purchasing a debtor’s assets through the bankruptcy process is the opportunity to obtain an order from a bankruptcy court approving the sale free and clear of other parties’ interests in the purchased property, pursuant to § 363(f) of the Bankruptcy Code.
In a recent opinion delivered by Judge Huennekens in the case of In re Alpha Natural Resources Inc., et al.,[1] the bankruptcy court permitted the debtor, Alpha Wyoming Land Co., to reject a settlement agreement that required the payment of a royalty, the amount of which was based on a percentage of the coal mined and subseque
Considering that bankruptcy cases typically involve divvying up a less-than-whole pie, it should not come as a surprise when a court disfavors debtors trying to have their cake and eat it, too.
Lenders frequently require that the insiders of single-asset real estate borrowers[1] personally guarantee their companies’ debt to the lender.
It’s widely known that avoidance actions to claw back fraudulent transfers can be filed after the typical four-year limitations period has expired under most states’ versions of the Uniform Fraudulent Transfers Act (or the new Uniform Voidable Transactions Act) by invoking the “discovery rule” in those statutes.
A string of recent email and media account scams[1] remind us that fraudsters are constantly looking for gullible victims, whether lawyers or clients, to scam in seemingly legitimate schemes. Folks in financial distress are excellent targets. Here are several examples to watch for and to caution clients against.
In a recent decision, the U.S. Bankruptcy Court for the Eastern District of Michigan held that a chapter 11 debtor may pay an unsecured claim in full prior to confirmation in order to moot the creditor’s objection to the debtor’s plan of reorganization and allow confirmation of the plan.
Competition among law firms to be selected as counsel to an Official Committee of Unsecured Creditor is notoriously stiff. The financial rewards are substantial and work begets more work. Every new engagement is another line in the pitch book, and one less for the competition.
By making official committees of creditors mandatory, Congress recognized that committees can be vital to the success of a chapter 11 case. That is why the United States Trustee Program (“USTP”) expends great effort to solicit and to appoint a “representative” group and to provide its members with a charge that explains their important fiduciary duties to act on behalf of their constituency.
