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American Tire: Rubber Hits the Road in Non-Ratable Chapter 11 Liability Management Transaction

Minority senior secured lenders in syndicated deals rely on, among other provisions, the "sacred right" protections contained in the credit documents to protect the benefit of their bargained-for agreement: primarily, that...more

A Tale of 2 Rulings: Serta, Mitel Cases Remind Why Contract Language Matters in Debt Documents

A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit has unanimously held that the debt exchange undertaken by Serta Simmons Bedding did not qualify as an "open market purchase" under the terms of Serta's...more

U.S. Supreme Court Holds Tribal Sovereign Immunity Expressly Abrogated by U.S. Bankruptcy Code

Section 106(a) of the U.S. Bankruptcy Code expressly abrogates the sovereign immunity of "governmental units" for purposes of certain bankruptcy-related litigation. A split of authority concerning whether that abrogation...more

Landlords Beware: Bankruptcy Court Litigation Could Come at a Cost

Those who lease commercial property may find themselves unwilling participants in complex proceedings before the U.S. bankruptcy courts when a tenant files bankruptcy. Meanwhile, the lease becomes an asset among the "property...more

Mission (Products) Accomplished: Trademark License Not Rescinded Upon Rejection in Bankruptcy - Supreme Court's Decision Ends...

• In Mission Product Holdings Inc. v. Tempnology LLC, the U.S. Supreme Court holds that rejection through U.S. Bankruptcy Code Section 365 does not terminate a trademark licensee's right to use a licensed trademark. The...more

First Circuit: Trademark Licensee Doesn't Retain Rights After Rejection by Bankrupt Licensor - Court's Decision Causes Circuit...

• Considered without reference to a corresponding definition, Section 365(n) of the Bankruptcy Code seems clear. If the trustee or debtor-in-possession, as licensor, rejects an executory intellectual property license, the...more

Courts Continue Trend of Recognizing Tribal Immunity in Bankruptcy Proceedings

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware (Court) issued a decision on Feb. 28, 2017, that has important – and positive – significance for Native American tribal governments, their...more

The Trend Reverses: College Tuition Payments Shielded from Avoidance in Bankruptcy - Bankruptcy Court Rules in Favor of University...

It is the start of a new semester, and all across the country, parents are writing tuition checks to the colleges and universities that their children attend. Colleges accept the checks on behalf of the students, the tuitions...more

Reversing the Trend: Will Congress Act to Except College Tuition Payments from Clawback in Bankruptcy? - Congress Weighs...

A trend emerging in consumer bankruptcy cases around the U.S. is causing concern for many parents, students and undergraduate schools. As was reported by The Wall Street Journal in an article published on May 5, 2015, an...more

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