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As discussed in a prior blog entry, virtually any amount of property in the United States will enable most foreign entities to commence a case under chapter 11 of the Bankruptcy Code.  But once that case is opened, there are a number of challenges that parties may raise to keeping the case in a U.S. court.  As we summarize these potential challenges below, it is worth noting that some of these challenges implicate the fundamental benefits or weaknesses to restructuring a foreign enterprise under chapter 11 of the Bankruptcy Code, as compared with the laws of another jurisdiction. 
  • The court may dismiss the case under section 305(a)(1) of the Bankruptcy Code if “the interests of creditors and the debtor would be better served by such dismissal or suspension” (emphasis added). The test is conjunctive, so it is rare for a voluntary case to be dismissed on these grounds; courts are generally content to accept that the debtor that has voluntarily filed a case under the Bankruptcy Code has determined that it is in its own best interest to do so.
3 years 1 week ago
Community bank CEOs truly stand out from the crowd when they possess a contagious enthusiasm that motivates sales teams, a discerning approach to hiring and an insatiable desire to innovate.

Read More from: BankThink

3 years 1 week ago
Hedge funds posted gains for the fourth consecutive month in May, advancing 0.7 percent for the month and year-to-date rising 3.9 percent, leading both the Standard & Poor’s 500 and Dow Jones Industrial Average, according to a report released last week. Read more here.
3 years 1 week ago
In re Nortel Networks, Inc., Case No. 09-10138 (KG), 2015 WL 2374351 (Bankr. D. Del. May 12, 2015) In an “unprecedented, complex, and massive dispute involving highly integrated multinational enterprises,” Judge Gross of the Delaware Bankruptcy Court, along with Justice Newbould of the Ontario Superior Court of Justice (Commercial List), issued simultaneous opinions after a truly unique twenty-one day cross-border trial, determining how to allocate $7.3 billion to creditors of Nortel Networks Corporation (“NNC”), the indirect parent of more than 130 subsidiaries, located in more than 100 countries.  Consistent with its unprecedented nature, Judge Gross ruled that a modified pro rata allocation of the funds is required, which by his own admission is “an extraordinary result.”  Op. at 111. Read More › Tags: International Bankruptcy Issues, Section 105

Read More from: Delaware Bankruptcy Insider

3 years 1 week ago
Many people who consider themselves savvy investors have little or no direct experience with alternative investments such as precious metals. The reasons for this are diverse and plentiful, but some of the more common are risk aversion due to the complexity of the subject, price fluctuation and a limited knowledge of the role that precious metals can play in a balanced portfolio. Read more here.
3 years 1 week ago
Twenty-one comment letters have been submitted about the SEC’s proposed rules on disclosure of hedging by employees, officers and directors, including ours linked here.
3 years 1 week ago
The harsh capital treatment of Trups holdings under Basel III undoes the regulatory relief already extended to community banks that had invested in the securities.

Read More from: BankThink

3 years 1 week ago
Receiving Wide Coverage ... The World's Local Bank, but Smaller: HSBC announced a plan to cut 25,000 to 50,000 jobs worldwide, in an effort to save about $5 billion yearly. How many of those job cuts will hit its U.S. operations wasn't reported. But the Wall Street Journal said HSBC plans to have its U.S. bank focus on international operations and less on domestic operations. "We will obviously need to turn the U.S. business around," CEO...

Read More from: BankThink

3 years 1 week ago
The exterior of the Health Diagnostic Labratory, Inc. building is shown in an April 2013 photo, in Richmond, Va.
Associated Press
A chapter 11 bankruptcy filing by Health Diagnostic Laboratory Inc. comes two months after the company reached an agreement with the Justice Department to settle a civil investigation into whether its payments to doctors amounted to kickbacks to induce them to order its tests. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Montreal, Maine & Atlantic Railway Ltd., the company behind a deadly 2013 oil train derailment in Quebec, Monday has another $110 million for its fund to help compensate the victims of the crash, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 week ago
The exterior of the Health Diagnostic Labratory, Inc. building is shown in an April 2013 photo, in Richmond, Va.
Associated Press
A chapter 11 bankruptcy filing by Health Diagnostic Laboratory Inc. comes two months after the company reached an agreement with the Justice Department to settle a civil investigation into whether its payments to doctors amounted to kickbacks to induce them to order its tests. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Montreal, Maine & Atlantic Railway Ltd., the company behind a deadly 2013 oil train derailment in Quebec, Monday has another $110 million for its fund to help compensate the victims of the crash, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 week ago
The exterior of the Health Diagnostic Labratory, Inc. building is shown in an April 2013 photo, in Richmond, Va.
Associated Press
A chapter 11 bankruptcy filing by Health Diagnostic Laboratory Inc. comes two months after the company reached an agreement with the Justice Department to settle a civil investigation into whether its payments to doctors amounted to kickbacks to induce them to order its tests. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Montreal, Maine & Atlantic Railway Ltd., the company behind a deadly 2013 oil train derailment in Quebec, Monday has another $110 million for its fund to help compensate the victims of the crash, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 week ago
By:  Steven P. Taylor Law Office of Steven P. Taylor, PC Bankruptcy Rule 3002(c) requires creditors to file proofs of claim within 90 days of the date set for the meeting of creditors.  However, getting a timely filed proof of claim by a mortgage creditor has long been an exercise in frustration. This has been due to significant changes in the proof of claim form that creditors must file to support their claims in bankruptcy.  Some of these changes are the explicit requirement that all writings supporting a claim or showing perfection of a security interest must be attached.   In addition, the signer of the proof of claim must include a statement under the penalty of perjury that all of the information is “true and correct to the best of the signer’s knowledge, information, and reasonable belief.”  The practical effect of these requirements is that creditors personally review all information and supporting documentation with greater scrutiny to avoid issues and liability.
3 years 1 week ago
This is the next (long overdue) post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll switch to Section F of the Report regarding “Plan Voting and Confirmation Issues.” Subsection 1, the focus of this post, addresses “Class Acceptance Generally and for Cramdown Purposes.” Overview of Plan Voting

Read More from: Plan Proponent

3 years 1 week ago
Before we offend our fellow law practitioners outside of the United States, we want to emphasize that this blog entry is not about what is “better” – chapter 11 or other bankruptcy laws, U.S. courts or other courts, Coke or Guaraná.  Like soda, local law tends to match local tastes.  So in most cases, a business is best off seeking the protection of its home courts when considering an in-court restructuring.  Unique circumstances, however, may cause a business to consider other restructuring options, and it may be helpful to know that chapter 11 provides a viable forum for businesses incorporated outside of and (surprisingly) with little or no business activities in the U.S.  In this installment of Breaking the Code, we cover the section of the Bankruptcy Code that makes coming to America possible: section 109(a).  Section 109(a) sets forth the basic requirements for commencing a case under the Bankruptcy Code: (a) Notwithstanding any other provision of this section, only a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title.
3 years 1 week ago
Series: Complex Financial Litigation 2015 The key battles in Chapter 11 often revolve around valuation disputes.  Valuation comes up early in a case, in the context of lift stay and financing motions.  It typically comes up again near the end in the context of confirmation battles.  And, valuation plays an important role in between.  This webinar will provide an overview of the varying contexts where valuation is a key driver and will discuss how courts arrive at decisions regarding value in various circumstances. Read more here.
3 years 1 week ago
Tony Thompson, a licensed securities professional since 1972, has been barred by FINRA from the securities industry. Read the full decision here.  FINRA went after Thompson after investors bought $50 million in high-yield promissory notes sponsored by TNP Securities, a broker-dealer owned by Thompson. Read more here.
3 years 1 week ago
Apple Pay's security shortcomings were likely deliberate, done with the goal of making signups and initial usage as easy as possible for shoppers. And so far, it's worked.

Read More from: BankThink

3 years 1 week ago
Overseas markets are loaded with opportunity, but for many investors, skepticism still outweighs the intrigue when considering global investing. Even when deciding to invest overseas, many stick to a few tried and true countries or stocks to build portfolios. Read more here.
3 years 1 week ago
A collection of Karmaloop’s creditors filed an objection in bankruptcy court to its proposed auction on Thursday, May14th. The objection was made as the Karmaloop auction was approaching, in which the company’s assets would be sold. This Official Committee of Unsecured Creditors felt that the sale, as proposed, would have allowed Karmaloop’s secured creditors to take the estate property and essentially leave other creditors with nothing. Read more here.
3 years 1 week ago