Since going effective on Feb. 19, 2020, much has been written regarding the restructuring benefits of a chapter 11, subchapter V case. Prior to its implementation, many small businesses were, from a practical standpoint, unable to benefit from chapter 11 due to the expense of filing and prosecuting a traditional chapter 11 case.
Maximizing value for creditors is one of the paramount objectives of the Canadian insolvency system. Where the value is in a business varies in each situation. Depending on the nature of the business, a debtor company may have crucial licenses or contracts that are not transferrable but are necessary in order to operate.
On March 7, 2022, the U.S. Supreme Court in Estate of Omar Fontana v. ACFB Administração Judicial Ltda.-ME, No. 21-828 (U.S. Mar. 7, 2022), denied a petition for review of a decision by the Eleventh Circuit, In re Transbrasil S.A. Linhas Aéreas, 860 Fed. Appx 166 (11th Cir. 2021).
Mexico adopted the UNCITRAL Model Law on Cross-Border Insolvency (MLCBI) in May 2000, when the current Business Reorganizations Law (Ley de Concursos Mercantiles) (LCM) was enacted. It was incorporated in Title XII of the LCM, which contains essentially the same provisions as the MLCBI, with a few additions.
Welcome to the ABI International Committee’s Spring 2022 Newsletter. We thank all the members of the committee for their continued support, and we encourage you to get involved with the committee over the coming year. Please reach out to us if you are interested in contributing to a future newsletter, have an idea for a conference panel, or just want to get more involved.
The Singapore-based Asian Business Law Institute (ABLI) recently released its Guide on the Treatment of Insolvent Micro and Small Enterprises in Asia in conjunction with the International Insolvency Institute.
A chapter 13 bankruptcy allows a defaulted homeowner the unique benefit of saving real property, along with other secured debt. Given the benefits of chapter 13, this particular type of bankruptcy has the ability to help a large mass of people, and as such requires an orderly administration.
From its inception, the National Ethics Task Force [1] was charged with answering the question of whether there is a need for national ethics rules, standards and general practice guidance in the bankruptcy context.
The Ethics and Professional Compensation Committee had an active 2021, and we are excited to carry that energy into 2022.
Bankruptcy courts have not always favored post-petition retainers to debtor’s counsel. [1] But does the Bankruptcy Code prohibit them? That is exactly the question Judge David D. Cleary answered in In re Golden Fleece Beverages Inc., in which he held that the Code indeed supports post-petition retainers.
The Business Reorganization Committee held a free committee wide call on Tuesday, September 23rd, at 4 pm ET. The topic was titled "Looking at International Insolvency/Restructurings Through the Bankruptcy Code and Beyond," and featured key speakers, including: Patrick Mohan (Moderator) of Reorg Research (Columbia, S.C.), Rachel Ehrlich Albanese of Akin Gump Strauss Hauer & Feld LLP (New York).
Third Party Releases are cropping up in Chapter 11 plans with increasing frequency: what are the standards for their inclusion in a plan? Who is getting released and why? What is the consideration for the Third Party Release? Are creditors who vote for the plan deemed to give a Third Party Release? Scott Wolfson of Wolfson Bolton P LLC in Troy, Michigan, led this discussion on third party releases and focused on the recent Fourth Circuit opinion in National Heritage Foundation v.
Section 363(k) of the Bankruptcy Code permits a secured creditor to credit bid at a sale of its collateral unless the court orders otherwise for cause. If the secured creditor is the winning bidder, it may offset its claim with the purchase price of the collateral. The U.S. Supreme Court’s Radlax opinion (Radlax Gateway Hotel, LLC v. Amalgamated Bank, 132 S. Ct. 2065 (2012)) affirmed secured creditors’ rights under section 363(k), but two 2014 opinions addressing credit bidding issues found cause to limit section 363(k) credit bidding.
The purpose of this call was to seek thoughts, suggestions, and assistance in setting and achieving new goals and objectives for the Committee. For example, they discussed ideas and topics for future newsletters, webinars, and educational sessions at ABI’s Winter Leadership Conference and Annual Spring Meeting. Additionally, the Committee discussed ideas for networking events and special projects for the Committee. Participating in future calls is a great way to get more involved!