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 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.
previously described on this site , a circuit...
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...
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
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...
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...
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...
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...
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...
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...
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
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...
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
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
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"...
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...
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
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
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...
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...
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...
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...
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’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...
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”...