Once a debtor files a chapter 11 bankruptcy proceeding, it must confirm a plan of reorganization or liquidate its assets under a liquidating chapter 11 or chapter 7 case. Confirmation requires compliance with all the provisions of chapter 11, including the absolute priority rule. What happens when a chapter 11 debtor is unable to effectuate the substantial consummation of a plan?
Unlike the more common pre-dispute arbitration agreement in which the contracting parties agree to arbitrate disputes if and when they occur, a structured arbitration agreement is a negotiated contract created after a dispute arises. It is customized to fit the facts and risks facing the parties and includes dispute-specific procedural rules applicable to both the parties and the arbitrator or arbitration panel.
On Nov. 13, 2015, in the U.S. Bankruptcy Court for the Southern District of New York, Judge Glenn issued a memorandum opinion in In re Vivaro Corp., et al.[1] with the following rulings: (1) a claim objection against a foreign entity may be served by U.S.
It is generally recognized that a sale of assets free and clear of successor liability claims (a “free-and-clear sale”) enhances the value of the bankruptcy estate because the purchaser will pay a higher premium for assets that do not carry liability.[1] There is often a tension between creditors — who seek to maximize their recovery —
My Nebraska client has a problem, and he’s unhappy. He’s an $80,000 preference defendant in Delaware and must travel 1,200 miles (with his attorney) for a mandatory mediation of the disputed preference claim. Although he thinks that the claim is “bogus” (despite explanations to the contrary), he has a what-choice-do-I-have-but-to-capitulate perception of all this.
The short answer is, “Maybe?”
Business and banking attorneys frequently represent businesses or lenders (or even bondholders and trustees) involved in joint ventures, partnerships, acquisitions, initiatives, participation loans, or other financial or joint business relationships/ventures.
Under § 363 of the Bankruptcy Code and subject to bankruptcy court approval, chapter 7 trustees have the power to sell the entire interest in property that the debtor owns with nondebtor co-owners.
The decision in Zachary v. California Bank & Trust[1] brings the Ninth Circuit in line with the four other circuits that have concluded that BAPCPA did not abrogate the absolute priority rule in individual chapter 11 cases.
This article addresses a legitimate fear common among companies negotiating license agreements: the license counterparty filing for bankruptcy. Given the business interruption that could ultimately occur as a result of a restructuring event, it is vital for practitioners to address bankruptcy or insolvency issues up front during the negotiation of the license agreement.
In the wake of the financial crisis of 2008, many homeowners found themselves in dire straits with respect to their residential mortgage loans, and some sought protection in bankruptcy. Even with the ability to cure mortgage payment defaults within a reasonable time,[1] some debtors still lacked the financial ability to maintain their non-modifiable mortgage payments[2] while also making the other payments required under the Bankruptcy Code.
