Courts have held that bankruptcy courts have the authority to recharacterize debt to equity if the circumstances warrant such treatment. However, circuit courts are divided as to which provision of the Bankruptcy Code provides such authority. The majority looks to the court’s equitable powers.
Private-equity funds typically provide capital to portfolio companies through equity infusions and debt financing depending on the fund’s investment strategy and the needs of the portfolio company.
The Bankruptcy Litigation Committee had a tremendous 2015! We strived to continue to provide our members with enlightening and useful substantive information, while also offering enjoyable and valuable social and networking opportunities.
The collapse of a business is traumatic for any owner-operator. They worry about their employees, damage to their reputations, and may well face an uncertain financial future. If the business was operated as a corporation, the failure of the company may have a devastating impact on the owner-operator, but she will not likely be compelled to repay compensation she received as an officer of the company prior to the filing.
Trump Entertainment Resorts Trump AC Casino Marks, LLC (the “licensee/debtor”) filed voluntary petitions for chapter 11 relief on Sept. 9, 2014. On Aug. 5, 2014, Trump Marks, LLC sought to terminate the royalty-free trademark license previously granted to the licensee/debtor.
In today’s corporate bankruptcy world, a debtor’s most important and valuable assets often come in the form of intellectual property (IP). Understanding the effect of bankruptcy on IP licenses is crucial not only for debtors, but also for existing licensees and for potential purchasers of IP assets.
This article addresses how the decision in In re Crumbs Bake Shop Inc. continues the evolution of trademark licensing in bankruptcy and contributes to an understanding of the fate of Intellectual Property (IP) during a § 363 asset sale.
Whether a contract is executory and therefore subject to assumption or rejection can have profound consequences on both the debtor and nondebtor parties to such contract. If both parties have material obligations to the other, then a contract is executory.
Today’s commercial bankruptcy environment favors the creation of special trusts to separate liquidating and litigation assets from operational assets in the hopes of maximizing distribution to creditors and permitting a reorganized debtor to emerge successfully from bankruptcy. The lengthy process of administering assets that have uncertain recoveries, or that may require significant time to handle, begs the use of a vehicle that can be separated from the
The dissolution of a law firm can be a financial catastrophe for its partners. In a typical law firm dissolution, the partners lose any bonuses, end-of-year draws, and thousands or hundreds of thousands of dollars in capital. Adding insult to injury, if the firm’s creditors force it into bankruptcy, which often happens following law firm dissolutions, the partners can expect to be the targets of litigation.
Morris, Nichols, Arsht & Tunnell LLP
Pachulski Stang Ziehl & Jones LLP
Thompson & Knight LLP
Membership Relations Director
Ice Miller LLP