Head on over to our Law of Banking blog to read Rebekah Hudgins‘ post on the U.S. Supreme Court Granting Certiorari to Decide Circuit Split on Applicable Law for the Recharacterization of Debt.
U.S. Supreme Court Grants Certiorari to Decide Circuit Split on Applicable Law for the Recharacterization of Debt
The Texas Supreme Court Rules in favor of The Golf Channel over the Stanford Ponzi Receiver—Ruling will Likely Limit Future Clawback Suits in Similar Cases
Attorney Trent Rexing discusses the recent Texas Supreme Court Ruling in favor of The Golf Channel. Read the full article here.
Subtenants, Beware of Bankruptcy and Commercial Leases
Subtenants need to be aware that a bankruptcy filing of their landlord may result in the subtenant losing its right to occupy the premises. To learn more, click on the link below to an article recently published by the online news site Hotel News Now: http://www.hotelnewsnow.com/Articles/35237/Subtenants-beware-of-bankruptcy-and-commercial-leases
Beware of Third-Party Releases in Bankruptcy
Companies seeking to confirm a Chapter 11 bankruptcy plan typically include releases that discharge the bankrupt company (the debtor) from liability on claims, thereby giving the debtor a chance to emerge from bankruptcy and seek a profitable future. However, Chapter 11 plans may also seek to discharge debts owed not by the debtor, but by a third party. Such third party releases are controversial and based in largely unsettled law. The releases are important because…
Litigating the Ordinary Course of Business Defense – Summary Judgment and the Stanziale v. Industrial Specialists Decision
A. Fees & Costs Preference litigation is frequently a game of poker between a bankruptcy trustee and creditors in which the trustee begins with a significant advantage – the lawsuit. In most cases, simply filing a lawsuit ensures that the bankruptcy trustee will leverage at least a nuisance settlement out of the defendant creditor. Depending on the strengths of a creditor’s defenses and the amount in dispute, those settlements may creep into the many…
Licensing Under the Perishable Agricultural Commodities Act: Is a USDA Apology Enough to Rescue a PACA Licensee?
The United States District Court for the Southern District of Ohio was recently presented with a strange set of facts regarding a purported licensee under the Perishable Agricultural Commodities Act (PACA). The issue was whether an acknowledged mistake by the United States Department of Agriculture (USDA) – accompanied by a written USDA apology, no less – was sufficient to retroactively reinstate the licensee status of a produce producer. The court considered a number of arguments…
Structured Dismissals Part IV – Bells & Whistles: Sweetening the Pot and Drawing Objections
A. Where We Left Off As noted in Part III, movants seeking approval of structured dismissal motions typically must prove that the proposed dismissal is in the best interest of the creditors. To do so, movants will usually have to prove that the dismissal provides better treatment than would a liquidation. To that end, most structured dismissals contain what are commonly referred to as “bells and whistles” that sweeten the deal for creditors. Unfortunately, many…
Alternatives to a Bankruptcy Filing
Debtors and creditors alike should understand that no debt restructuring option is perfect and that different options have advantages and disadvantages. To learn more, click on the link below to an article recently published by the online news site Hotel News Now: http://www.hotelnewsnow.com/Article/16344
Working for Free: Supreme Court Holds that Fees Incurred Defending Fee Application are not Recoverable
The Bankruptcy Code allows bankruptcy trustees, debtors in possession, and official committees to hire attorneys, accountants, and other professionals to assist them in carrying out their statutory duties, with their fees to be paid by the bankruptcy estate. However, to get paid, these professionals must obtain approval from the bankruptcy court. But what happens when someone objects to their fees? Can the professionals recover the fees they incur in defending their fee applications? The Supreme…
Providing Notice Under the Perishable Agricultural Commodities Act: Get it Exactly Right, or Risk Not Getting Paid
A recent decision by the District Court for the Eastern District of North Carolina demonstrates just how important it is for parties asserting rights under the Perishable Agricultural Commodities Act (PACA) to provide proper notice. Failing to correctly provide notice means that the creditor is not entitled to the PACA trust fund protections. In most cases, that will make the difference between getting paid in full and getting paid cents on the dollar. The case,…