LexisNexis® Legal Newsroom
RadLAX Oral Argument - Part II: What's Indubitably Bothering the Supreme Court Justices Equivalently

As I noted three years ago in my " What's Bothering Ruthie ? " post on Justice Ginsburg's one-liner that stopped the Chrysler sale dead in its tracks, today's Supreme Court oral argument in RadLAX Gateway Hotel, LLC v. Amalgamated Bank ( transcript ) left no doubt about what's...

Supreme Court Indubitably Grapples With Credit Bidding

The Supreme Court heard arguments yesterday in RadLAX Gateway Hotel over whether the Bankruptcy Code permits a debtor in a chapter 11 case to sell encumbered assets without providing its secured lenders an opportunity to credit bid their debt. As previously described on this site , a circuit...

U.S. Supreme Court Refuses To Hear Idearc Shareholders' Objection To Bankruptcy

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Apr. 30 denied certiorari to a class of shareholders in bankrupt Idearc Inc. who had objected to the confirmation of Idearc's Chapter 11 reorganization plan on grounds that its approval violated due process ( Spencer Ad Hoc Equity Committee...

High Court: Debtor May Not Sell Property Free Of Lien; Must Allow Credit-Bidding

WASHINGTON, D.C. - The U.S.Supreme Court today affirmed that a debtor company may not obtain confirmation of a nonconsensual Chapter 11 plan that permits the debtor to sell collateral free and clear of a creditor bank's lien without permitting the bank to credit-bid at the sale ( RadLAX Gateway...

RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 2012 U.S. LEXIS 3944 (May 29, 2012)

LexisNexis Core Overview: Sales free of liens under 11 U.S.C.S. § 1129(b)(2)(A) [ an annotated version of this statute is available to lexis.com subscribers ] had to satisfy § 1129(b)(2)(A)(ii)'s requirements, not those of both § 1129(b)(2)(A)(ii) and (iii), thus, the debtors could...

Dewey & LeBoeuf Files For Chapter 11 Bankruptcy

NEW YORK - (Mealey's) The law firm of Dewey & LeBoeuf filed for Chapter 11 bankruptcy on May 28 in New York, listing between $100 million and $500 million in liabilities ( In re: Dewey & LeBoeuf , No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). ( Petition. Document #80-120606-030C .) ( lexis...

Chapter 11 Once Again Safe for Undersecured Lenders - Supreme Court Affirms Right to Credit Bid in RadLax

By Ben Feder The U.S. Supreme Court today in Radlax Gateway Hotel, LLC, et al. v. Amalgamated Bank unanimously upheld the right of secured creditors to credit bid their debt upon a sale of their collateral pursuant to a nonconsensual chapter 11 plan of reorganization. As described in numerous prior...

Not Required, But Still Appropriate - Judge Glenn Appoints Examiner in ResCap

The chapter 11 case of mortgage lender and servicer Residential Capital, LLC ("ResCap") is fascinating on a number of levels. Its parent company, Ally Financial, Inc. ("AFI"), hopes to use ResCap's bankruptcy to extricate itself from potential liabilities arising from the collapse...

LexisNexis® Bankruptcy Law Community Podcast: Kenneth Klee and Ancela Nastasi on the U.S. Supreme Court's decision in RadLAX Gateway Hotel LLC v. Amalgamated Bank.

On this edition, Ancela Nastasi of Fulbright & Jaworski and Kenneth Klee of Klee, Tuchin, Bogdanoff & Stern discuss the May 29, 2012 U.S. Supreme Court decision in RadLAX Gateway Hotel LLC v. Amalgamated Bank in which the court held that a secured creditor has a right to credit bid its secured...

Separate Classification of Deficiency Claims in Chapter 11 Plans

James M. Lawniczak considers a Ninth Circuit appellate panel decision allowing separate classification of a lender's unsecured deficiency claim in a chapter 11 plan. The decision is part of the continuing conflict between single asset real estate debtors and secured creditors over plan confirmation...

Twinkie Maker Hostess Seeks Liquidation as Deal with Unions Breaks Down

NEW YORK - (Mealey's) Twinkie maker Hostess Brands Inc., which had been proceeding with a bankruptcy reorganization plan, moved in the U.S. Bankruptcy Court for the Southern District of New York on Nov. 16 for authorization to convert its proceeding to Chapter 7, which would result in liquidation...

Consumer Chapter 11: When Big Bankruptcies Get Personal

Whether it's " Mr. Las Vegas " or crazy actors , celebrities always seem to have financial troubles. That's part of what makes them so entertaining. Understandably, the large amounts of money they make (and owe) can sometimes push them into consumer bankruptcies of the Chapter 11...

Bip . . . Bip . . . Bip . . . "Pong" Creator Atari Files for Chapter 11

Atari, Inc., the creator of the primordial video game " Pong ", filed for Chapter 11 Jan. 21 in the U.S. Bankruptcy Court for the Southern District of New York. Its parent company, Atari SA, simultaneously sought bankruptcy protection in France. The moves were precipitated by a cessation...

Fifth Circuit Issues Two Decisions Easing Path for Chapter 11 Debtors

Within the span of a few days, Judge Patrick Higginbotham of the Fifth Circuit released two decisions which will ease the way for chapter 11 debtors to confirm their plans. In the first decision, the Court definitively put a stake through the heart of the artificial impairment doctrine, while in ...

DeX Games - SuperMedia and Dex One File Simultaneous Chapter 11 Cases to Effect Merger

Distressed M&A is the "new normal" in Chapter 11 cases, as noted here and elsewhere . Two large media marketing and advertising companies, SuperMedia and Dex One , took the "new normal" to new extremes last week by filing simultaneous and coordinated "prepackaged"...

"Girls Gone Wild" Chapter 11 Case - [Insert Joke Here]

GGW LLC and its affiliates ("GGW"), which produce and distribute the soft core pornography videos known as "Girls Gone Wild", recently filed for relief under chapter 11 of the Bankruptcy Code. The filing follows years of legal troubles for the company's founder, Joe Francis, including...

Bankruptcy Judge Sets Specialty Products’ Asbestos Liability At $1.16 Billion

WILMINGTON, Del. -- (Mealey's) Former joint compound producer Bondex International Inc. and its related holding company Specialty Products Holding Corp. face an estimated $1.16 billion in pending and future asbestos personal injury claims, about double what the companies estimate their asbestos...

DOJ Unveils New Fee Guidelines For Big Ch. 11 Cases

Law360, Chicago (June 11, 2013, 1:41 PM ET) -- The U.S. Department of Justice's bankruptcy watchdog arm on Tuesday released its long-awaited new framework for scrutinizing attorneys' fees in large Chapter 11 cases, hoping to boost transparency and keep bankruptcy lawyers from charging above...

Pfizer Faces Asbestos Actions after Supreme Court Declines to Hear Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 24 denied a bid for certiorari by Pfizer Inc. of a ruling removing the protection for Pfizer of a bankruptcy injunction barring asbestos personal injury claims entered in the case of a defunct Pfizer subsidiary ( Pfizer Inc. v. Law...

Auto-Hauler Allied Systems Holdings' Car Wreck of a Chapter 11 Case May Finally Be at an End

Many commentators have remarked that a “new normal” has evolved for Chapter 11 proceedings , wherein the major constituents negotiate the salient terms and exit strategy of the debtor’s restructuring prior to the filing of the bankruptcy petition, generally leading to shorter, less...

ABI Commission Considers Future of Chapter 11 (Austin Hearing Pt. 1)

The ABI Commission studying reform of Chapter 11 met for its seventeenth and final time at the UT Bankruptcy Conference in Austin, Texas on Friday November 22, 2013. The Commission heard from a total of eight witnesses on a variety of topics. Seven of the eight witnesses touched on the venue issue with...

Interesting ResCap FactOID – Court Rejects Effort to Disallow Portion of Bond Claims Based on “Original Issue Discount”

by Ben Feder In an opinion that will have a significant impact on the viability of debt for debt exchanges and out of court restructurings, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York has refused in the Chapter 11 case of Residential Capital LLC (“ ResCap...

Bankruptcy Judge: Plaintiffs, Lawyers Covered Up Evidence in Garlock Meso Cases

CHARLOTTE, N.C. — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies LLC’s total estimated liability for present and future mesothelioma claims is only $125 million, not $1.2 billion as asbestos personal injury claimants argued, because Garlock’s history of settling mesothelioma...

Fisker Automotive Chapter 11 Case: a Two-Headed Stalking Horse and a New Credit Bidding Controversy

Fisker Automotive’s chapter 11 case began in what has become a depressingly familiar fashion – a fast-tracked sale to a secured lender. However, two rulings by Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware have made this a fascinating case to follow. Judge Gross...

U.S. Supreme Court Will Not Hear Case on Transfers Made Under Bankruptcy Code

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court today declined to hear a case in which an unsecured creditors committee had argued that 11 U.S. Code Section 546(e) permits it to recover transfers made by a debtor company to stockbrokers, financial institutions and other “qualified”...