The Federal Arbitration Act, 9 U.S.C. §§ 1-307, represents a federal policy in favor of enforcing arbitration clauses. The Supreme Court has held that courts are generally obligated to enforce arbitration clauses absent a countervailing federal statute. Shearson/Am. Express, Inc. v. McMahon, 482 U.S. 220, 226 (1987). However, this policy inevitably comes into conflict with […]
To Arbitrate or Not to Arbitrate, That is the Question: Enforcing Arbitration Clauses in Bankruptcy
Every Rose Has Its Thorn: Involuntary Bankruptcy Petitions
An April 16, 2019 ruling in the U.S. Bankruptcy Court for the Northern District of Texas in the case of In re: Essential Financial Education, Inc. held that an involuntary bankruptcy petition filed under 11 U.S.C. §303 may not dismissed when it serves a legitimate purpose and is not merely an extension of a two-party […]
WEBINAR: The Rights and Obligations of a Creditor in Bankruptcy
Paul Hammer is presenting a Webinar on June 5, 2019 at 3PM EST entitled “The Rights and Obligations of a Creditor in Bankruptcy” through the National Association of Credit Management. This is the first of a two-part series. I look forward to providing useful content to NACM membership (over 14,000 members as of today’s date) […]
PRESENTATION: Keeping Your Truck on the Road: Examining Challenges Arising in Chapter 11 Trucking Cases
Michael Ridulfo is presenting on June 5, 2019 at the Turnaround Management Association Houston Chapter Breakfast Meeting, on the topic of “Keeping Your Truck on the Road: Examining Challenges Arising in Chapter 11 Trucking Cases”. Register open to members and non-members on the TMA website. HOUSTON CHAPTER EVENT TMA Houston June 5 Breakfast Meeting Wednesday, […]
Protecting Oil & Gas Royalty Interests in Energy-Related Bankruptcies
With the recent uptick in energy-related bankruptcies expected to continue for the foreseeable future (in one prominent example, industry giant Weatherford has just filed for Chapter 11 protection), oil and gas royalty owners need to be on alert. Because companies in financial distress usually fall behind on royalty payments, royalty owners, usually one of the […]
Duties and Obligations of Ombudsmen in Healthcare Bankruptcies – Public Safety Comes First
Healthcare bankruptcies present unique challenges in addition to financial restructuring. An immediate concern that must be addressed in these cases is the ability of the debtor to provide, and continue to provide, adequate services to existing and future patients. Having been involved in numerous healthcare matters filed under both Chapter 7 and Chapter 11, I […]
Bondholders Beware? First Circuit Ruling’s Potential Adverse Impact on Puerto Rico’s Long-Term Restructuring Prospects
Having practiced in Puerto Rico for nearly a decade, including being involved heavily in the ongoing Title III PROMESA proceedings, the recent ruling handed down by the First Circuit could prove to be the most impactful for the Island’s long term restructuring prospects and its access to the Bond markets. The controversial ruling, which pertains […]
The Bankruptcy Discharge Injunction – How Creditors Can Avoid Getting Caught with Their Hands in the Cookie Jar
Debtors who have filed for bankruptcy and received their Discharge often continue to receive collection letters and phone calls from their creditors. Some creditors even go so far as to sue on these discharged debts or garnish wages and bank accounts. Such actions may result in severe penalties, sanctions and damages. This article goes over […]
Don’t be Late – Filing Proofs of Claims in a Bankruptcy Case
When a creditor is notified that a debtor has filed for bankruptcy, the creditor should be careful to determine whether it needs to file a Proof of Claim in the case to preserve its rights to receive payments from the bankrupt estate. This article goes over the importance of a creditor acting in a timely […]
Proceed with Caution! Understanding Ipso Facto Clauses In Bankruptcy
The phrase ipso facto is Latin for “by the fact itself.” Ipso facto clauses are sometimes included in lease and purchase contracts, and they assert that if the lessee or purchaser becomes insolvent, or files for bankruptcy protection, then the contract has been breached. In other words, under such a clause the very act of […]