Hon. Jack B. Schmetterer of the U.S. Bankruptcy Court for the Northern District of Illinois issued a memorandum opinion dismissing a debtor’s lawsuit to equitably subordinate a secured lender’s claim. In re American Consolidated Transportation Cos. Inc., Adv. No. 10-00154, slip op. (Bankr. N.D. Ill. July 13, 2010).
Does a bankruptcy court have the power to enter a final order in a fraudulent-transfer action where the defendant has not filed a proof of claim, or is the bankruptcy court limited to submitting proposed findings of fact and conclusions of law to the district court for de novo review and entry of judgment? On March 11, 2019, in Paragon Litigation Trust v. Nobel Corp., et al.
In a “code-driven” discipline such as bankruptcy, third-party releases are a rare breed. As a form of equitable relief available to certain nondebtors in certain court-decreed circumstances in certain circuits, they are shrouded in a level of uncertainty seldom seen elsewhere. A recent holding from In re FirstEnergy Solutions Corp.
Parties enter into contracts to get the benefit of their bargain. Loan agreements are no different. If a credit facility has a term of five years, the borrower should expect to pay interest for five years.
On Feb. 25, 2019, the U.S. Court of Appeals for the Second Circuit issued a decision holding that a trustee is not barred by either the presumption against extraterritoriality or by international comity principles from recovering property from a foreign subsequent transferee that received the property from a foreign initial transferee.
As transactional business attorneys, we strive to craft documents that are bullet-proof, covering every what-if scenario should a deal fall apart. We hope that the agreements we draft will result in a fair and just consequence for all parties to the bargain.
In the multi-billion-dollar claims-trading market, your offer and acceptance might not be what you thought it was.
Imagine that Hal Steinbrenner agreed to purchase the Boston Red Sox from John Henry, Tom Werner and Larry Lucchino. All three signed non-compete agreements promising to buy no interest in an MLB team for the next five years. Steinbrenner made a $1 billion down payment, and MLB Commissioner Rob Manfred signed off on everything.
Third-party releases can be an integral part of a chapter 11 bankruptcy case. These releases can have the effect of a nonconsensual resolution of state law claims, and a question exists as to how they are implicated in a Stern v. Marshall analysis.
A seller of goods who enjoys a casual relationship with a buyer — without adhering to strict documentation and enforcement standards — can find itself in dire straits in the event of that buyer’s insolvency.
Smiley Wang-Ekvall, LLP
Costa Mesa, CA
Lowenstein Sandler LLP
New York, NY
Cole Schotz P.C.
Simpson Thacher & Bartlett
New York, NY
Cole Schotz P.C.
Special Projects Leader
Perkins Coie LLP