It’s rare for a debtor in bankruptcy to raise allegations of involuntary servitude and a violation of the Thirteenth Amendment. But one debtor did just that after a chapter 11 trustee was appointed to take over the debtor’s...more
It is well known in the restructuring world that a debtor in bankruptcy can’t get a PPP loan. But what if you’re a debtor and decide a PPP loan could save your business? Will a court dismiss the case so you can seek a loan?...more
3/9/2021
/ Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Commercial Bankruptcy ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Creditors ,
Debtors ,
Motion to Dismiss ,
Paycheck Protection Program (PPP) ,
Relief Measures ,
Small Business
A seat at the table: this is what you likely want when your financial interests are drawn into a bankruptcy court proceeding. You’ll seek to be heard and do what you can to maximize your recovery. This is especially true if...more
Every so often, we post an article on case law discussing proofs of claim. The decisions often contain basic but important information about the timing and manner of claim filing.
One set of cases concerns whether a claim...more
When there are large numbers of substantial individual tort claims against a debtor, potentially involving claimants unknowable to the debtor who themselves may not know they have a claim, the bankruptcy process faces special...more
2/25/2020
/ Asbestos ,
Asbestos Trust Claims ,
Chapter 11 ,
Commercial Bankruptcy ,
Creditors ,
Due Process ,
Federal Rules of Bankruptcy Procedure ,
Fourteenth Amendment ,
Mass Tort Litigation ,
Mergers ,
Proof of Claims ,
Section 363 ,
Subsidiaries
When a debtor files for bankruptcy, the Bankruptcy Code provides for an automatic stay of almost all proceedings to recover property from the debtor. See 11 U.S.C. § 362(a). A party in interest can seek an order exempting...more
1/27/2020
/ Appeals ,
Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Creditors ,
Debtors ,
Federal Rules of Bankruptcy Procedure ,
Motion for Relief from Automatic Stay ,
Reaffirmation ,
Right To Appeal ,
Ritzen Group Inc v Jackson Masonry LLC ,
SCOTUS ,
Time-Barred Claims
Section 303 of the Bankruptcy Code allows creditors to initiate an involuntary bankruptcy case against a debtor. The petition initiating the case must be filed by creditors holding claims aggregating to at least $10,000, and...more
The Bankruptcy Code gives a trustee powers to avoid certain pre-bankruptcy transfers of the debtor’s property to other entities. For example, a trustee can avoid transfers made with the intent to impair the ability of...more
10/30/2019
/ Affirmative Defenses ,
Bankrtupcy Code Section 550 ,
Bankruptcy Code ,
Bankruptcy Court ,
Burden of Proof ,
Commercial Bankruptcy ,
Creditors ,
Debt Collection ,
Debtors ,
Due Process ,
Fraudulent Transfers ,
Google ,
Trustees
Chapter 15 of the Bankruptcy Code, added in 2005, provides a route for debtors to obtain US recognition of their insolvency proceedings in other countries. A foreign proceeding can be recognized under chapter 15 as either a...more
Here’s an update on recent political, social, and economic developments in Venezuela. From our perspective as a blog focused on insolvency and restructuring topics, the upshot of what’s been taking place in Venezuela is that...more
7/25/2019
/ Bankruptcy Code ,
Bonds ,
Chapter 15 ,
Creditors ,
Debt ,
Debt Restructuring ,
Economic Sanctions ,
Imports ,
Oil & Gas ,
State-Owned Enterprises ,
Venezuela
Successful bankruptcy cases typically end with a court order releasing a debtor from liability for most pre-bankruptcy debts. This order, generally known as a “discharge order,” prohibits the debtor’s creditors from trying to...more
6/17/2019
/ Appeals ,
Attorney's Fees ,
Bankruptcy Appellate Panel (BAP) ,
Bankruptcy Code § 524(a) ,
Bankruptcy Discharge Order ,
Chapter 7 ,
Civil Contempt Orders ,
Concurrent Litigation ,
Creditors ,
Dischargeable Debts ,
Injunctive Relief ,
Money Judgment ,
Reasonable Belief Test ,
Remand ,
Reversal ,
SCOTUS ,
Standard of Review ,
Statutory Violations ,
Taggart v Lorenzen ,
Vacated
Last year, we discussed a decision by Judge Sean Lane of the United States Bankruptcy Court for the Southern District of New York concerning section 109(a) of the Bankruptcy Code. In a recent cross-border case, In re PT...more
5/31/2019
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 15 ,
Choice-of-Law ,
Commercial Bankruptcy ,
Creditors ,
Cross-Border ,
Debt Restructuring ,
Debtors ,
Eligibility ,
Filing Requirements ,
Forum Selection ,
Noteholders
Two weeks ago, we discussed asset sales under Bankruptcy Code section 363. As that post noted, section 363 requires court approval for asset sales outside the ordinary course of business, with courts ensuring that sales...more
5/6/2019
/ 363 Sales ,
Appeals ,
Auction ,
Bankruptcy Code ,
Bankruptcy Court ,
Breach of Contract ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Fiduciary Duty ,
Private Sales ,
Sale of Assets ,
Settlement Agreements ,
Trustees
When a debtor files for bankruptcy, almost all proceedings to recover property from the debtor are automatically stayed by force of law. See 11 U.S.C. § 362(a). This provision, known as the automatic stay, is a central...more
A court in New York has allowed offshore debtors to take control of an investment account in the U.S. over the objection of a shareholder. At stake was the court’s discretion to permit chapter 15 debtors to access the funds...more
Fraudulent transfer law allows creditors and bankruptcy trustees, under certain circumstances, to sue transferees to recover funds received where a debtor’s transfers to the transferees actually or constructively defrauded...more
The Bankruptcy Court in Delaware recently denied a request for an administrative expense claim to an entity that tried but failed to buy a debtor’s key assets. The decision arises out of the first of three attempts by...more
8/9/2018
/ Administrative Expenses ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Competitive Bidding ,
Contribution Claims ,
Creditors ,
Debtors ,
Merger Agreements ,
Purchasers
Judge Martin Glenn granted recognition to a UK scheme of arrangement with third-party releases that lacked full creditor consent. In re Avanti Communs. Grp., PLC, No. 18-10458, 2018 Bankr. LEXIS 1078 (Bankr. S.D.N.Y. Apr. 9,...more
6/5/2018
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 15 ,
Commercial Bankruptcy ,
Consent ,
Creditors ,
Debtors ,
Enforcement ,
Scheme of Arrangement ,
Third-Party Release Agrements ,
UK
In a recent decision, In re B.C.I Fins. Pty Ltd. (In Liquidation), No. 17-11266, 2018 Bankr. LEXIS 1217 (Bankr. S.D.N.Y. Apr. 24, 2018), Judge Sean Lane granted a chapter 15 petition after rejecting a challenge to...more
5/18/2018
/ Australia ,
Bankruptcy Code ,
Breach of Duty ,
Chapter 15 ,
Choice-of-Law ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Fiduciary Duty ,
Intercompany Transactions ,
Jurisdiction ,
Liquidation
Section 544 of the Bankruptcy Code permits a bankruptcy trustee to avoid any transfer that would be avoidable by creditors under state fraudulent transfer law. Section 550 of the Bankruptcy Code permits the bankruptcy trustee...more
In BFP v. Resolution Tr. Corp., 511 U.S. 531 (1994), the Supreme Court held that a mortgage foreclosure sale conducted in accordance with state law was shielded from avoidance under the Bankruptcy Code’s fraudulent conveyance...more
The Bankruptcy Code provides for the appointment of a creditors’ committee in chapter 11 bankruptcy cases. See 11 U.S.C. § 1102. There is no parallel provision applicable to chapter 7 cases. When a bankruptcy case is...more
3/30/2018
/ Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Bylaws ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Corporate Dissolution ,
Creditors ,
Czyzewski v Jevic Holding Corp ,
Debtors ,
Due Process ,
Settlement ,
Transfer of Rights ,
Trustees
In Dahlin v. Lyondell Chemical Co., 2018 U.S. App. LEXIS 1956 (8th Cir. Jan. 26, 2018), the Eighth Circuit Court of Appeals rejected an argument that bankruptcy debtors were required by due process to provide more prominent...more
2/2/2018
/ Appeals ,
Books & Records ,
Chapter 11 ,
Creditors ,
Debt ,
Debtors ,
Dischargeable Debts ,
Due Process ,
Federal Rules of Bankruptcy Procedure ,
Foreseeability ,
Notice Requirements ,
Summary Judgment
In Crystallex Int'l Corp. v. Petróleos de Venez., S.A., Nos. 16-4012, 17-1439, 2018 U.S. App. LEXIS 95 (3d Cir. Jan. 3, 2018), the U.S. Court of Appeals held there could be no fraudulent transfer liability under the Delaware...more
In this post, we return to cross-border insolvencies and examine one of the first decisions issued in 2018 by a bankruptcy court in a chapter 15 case: In re Energy Coal S.P.A., No. 15-12048 (LSS), 2018 Bankr. LEXIS 10 (Bankr....more
1/9/2018
/ Bankruptcy Code ,
Chapter 15 ,
Choice-of-Law ,
Commercial Bankruptcy ,
Creditors ,
Cross-Border ,
Debtors ,
Foreign Debt ,
Insolvency ,
Italy ,
Venue