Like their for-profit counterparts, nonprofit corporations face a variety of challenges throughout their corporate life cycles, some of which may lead an organization to pursue reorganization under chapter 11 of the Bankruptcy Code. One of the issues that arises during a nonprofit’s reorganization is whether its board of directors m
A Feb. 27, 2018, decision by the U.S. Supreme Court resolved a split in the circuit courts by clarifying that a bankruptcy trustee, creditors’ committee or other entity with standing may claw back preferences and constructive fraudulent transfers involving the purchase of securities, even though the transaction was effectuated by depositing funds or securities with financial institutions.
What happens to a licensee’s right to use a trademark if the licensor files for bankruptcy?
The permanent release of a nondebtor from a debt owed to a third party in a chapter 11 plan is barred per se in some courts and must meet a high standard to be allowed in others. The U.S. Bankruptcy Court for the District of Colorado in In re Midway Gold US Inc.
The issue of nonconsensual third-party releases in chapter 11 plans continues to generate litigation. Releases and corresponding injunctions frequently insulate nondebtors — such as directors, officers or parent entities — from claims asserted by other nondebtors. Litigation regarding third-party releases has also involved jurisdictional issues, including those addressed in Stern v.
Bankruptcy courts “generally presume that good chapter 11 lawyers can and should negotiate without the help of an outside mediator.” However, some Chapter 11 cases are “so inherently complex” or “riddled” with “high levels of distrust” that “the presiding judge (or more rarely, the parties) views the appointment of a plan mediator as a virtual necessity from the
In the recent case of Calita Elston Robinson, the U.S. Bankruptcy Court for the Northern District of Georgia addressed the issue of what the “interest at the legal rate” means under § 726(a)(5) of the Bankruptcy Code.
Profs. Richard M. Hynes (University of Virginia; Charlottesville, Va.), Anne Lawton (Lansing, Mich.) and Margaret Howard (Washington & Lee Law School; Lexington, Va.) recently published an article in the ABI Law Review on a groundbreaking study of chapter 11 cases for individual debtors. The report profiles a typical individual who seeks protection and relief under chapter 11. The profile looks like this:
Section 1129(a)(10) of the Bankruptcy Code — requiring acceptance of a proposed plan from at least one impaired voting class — can often pose a unique challenge for single asset real estate debtors. Indeed, finding an impaired accepting class may be the lynchpin for success in run of the mill single-asset bankruptcies, where debtors
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