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 […]
Proceed with Caution! Understanding Ipso Facto Clauses In Bankruptcy
Navigating The Crucial Initial Days Of A Chapter 11 Filing – First Day Motions
The initial stage of a Chapter 11 filing is the most crucial and debtors must be ready for the tactics of aggressive creditors and stakeholders jockeying for priority in the restructuring proceedings. As part of this phase, “first day motions” are typically filed on the first day of a case. These motions are to obtain […]
Decoding the Petroleum Marketing Practices Act (PMPA) as It Pertains to Bankruptcy
A gasoline retailer defaults on its obligations under an ongoing Franchise Agreement that it has with a brand name in the oil & gas industry. What steps are available to the franchisor to protect its economic interests in that particular station or station(s)? How about if the franchisee/retailer files for bankruptcy protection? As the Energy […]
Lease Termination Disputes and Bankruptcy
As the brick and mortar retail industry continues to decline, landlords are likely to engage in an increasing number of lease disputes with delinquent tenants. As we have seen over the past five years, those disputes often end up in bankruptcy court and may drag on for months before a landlord is able to shake […]
U.S. Supreme Court Grants Certiorari to Decide Circuit Split on Applicable Law for the Recharacterization of Debt
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.
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 […]
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. […]
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 […]