The Texas Two-Step is Alive and Well
See a related update, published Feb. 16, 2023. In re LTL Mgmt. LLC, No. 21-30589 (MBK) [Docket No. 1572] (Bankr. D.N.J. 2021) Other than being a dance, what is [...]
A Guide on How to Avoid a Clawback of a Settlement Payment of Securities
Discussing: Holliday v. Credit Suisse Securities (USA) LLC, No. 20-5404 (S.D.N.Y. Sept. 13, 2021) Subject to certain defenses, in a bankruptcy proceeding, transfers made to a creditor within 90 [...]
Classifying Claims in a Plan of Reorganization – Creating an Accepting Class
Section 1122(a) of the Bankruptcy Code provides that “a plan may place a claim … in a particular class only if such claim … is substantially similar to the [...]
A Secured Creditor’s Right to Credit Bid in a Bankruptcy Sale
Generally speaking, when a debtor or trustee in bankruptcy seeks to sell certain assets, a secured creditor has a right to "credit bid" the secured portion of its claim. [...]
Circumstances Justifying the Dischargeability of Student Loans Under the Bankruptcy Code
re: Homaidan v. Sallie Mae, Inc., et al., No. 20-1981 (2d Cir. July 15, 2021) Generally speaking, student loans are extremely difficult to discharge in bankruptcy even under dire [...]
Recent Fifth Circuit Case Gives Lender Green Light to Change Management
The Fifth Circuit Court of Appeals recently upheld a lower court ruling permitting a lender to change management pursuant to a negotiated agreement notwithstanding the debtor’s allegation that it [...]
Sales in Bankruptcy – No Stay, No Pay
Official Comm. v. Walker Cty. Hosp. Dist. (In re Walker County Hospital Corp.), No. 20-20575, 2021 U.S. App. LEXIS 20610 (5th Cir. July 12, 2021) The Fifth Circuit Court [...]
The Purpose of Special Purpose Entities
The American Bankruptcy Institute describes a Special Purpose Entity (SPE) as an entity formed concurrently with, or immediately prior to, the closing of a financing transaction…to isolate the financial [...]
A Recent Decision Recharacterizing Debt to Equity Under Delaware Law Could Have Far-Reaching Implication
A recent decision out of the Bankruptcy Court for the Southern District of New York1 interpreting Delaware law will probably impact other decisions throughout the country in light of [...]
What Rights and Possible Exposure to Consequences Arise for Tenants When a Real Property Lease is Rejected by a Bankrupt Landlord?
Section 365(h) of the Bankruptcy Code provides special protection for non-debtors who have rights as tenants if a trustee or Chapter 11 debtor landlord rejects an unexpired lease. [...]
