The Supreme Court two years ago ruled in Baker Botts v. Asarco that bankruptcy professionals entitled to compensation from a debtor’s bankruptcy estate had no statutory right to be compensated for time spent defending against objections to their fee applications. Since then, “estate professionals,” i.e., those retained in a bankruptcy case by a trustee, debtor...… Continue Reading
In In re Spanish Peaks Holdings II, LLC, Case No. 15-35572 (9th Cir. Sept. 12, 2017), the Ninth Circuit Court of Appeals held that a bankruptcy trustee may use Section 363(f) of the Bankruptcy Code to sell real property free and clear of unexpired leases without affording the non-debtor lessees the right to retain possession...… Continue Reading
Three years ago, the Commercial Code amended the procedure for declaring debts in France with the aim of simplifying the management of insolvency proceedings. Before this reform, the only way for creditors (excluding employees) to declare their debts was to send their proof of debt to the receiver within 2 months (or 4 months for those living outside...… Continue Reading
In In Re Lexington Hospitality Group, LLC, the United States Bankruptcy Court for the Eastern District of Kentucky thwarted a lender’s efforts to control whether its borrower could file bankruptcy. As a condition to the loan, the lender mandated that the borrower’s operating agreement have certain provisions that require the affirmative vote of an “Independent Manager”...
Upcoming Committee Formation Meeting: Thursday, October 12, 2017 10:00 AM Case Name: 17-12029 (KG) Location: Delaware State Bar Association, 405 N. King Street, 2nd Floor, Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for further details. Contact Norman L. Pernick and Nicholas J. Brannick for more information.
Remuneration schemes involving Employee Benefit Trusts (EBTs) have become more prevalent over the last 20 years, often as a way of seeking to remunerate key employees without making pay as you earn or national insurance contributions. Given the developments highlighted below, insolvency practitioners are advised to investigate such schemes in matters coming across their desks to see...… Continue Reading
GST Autoleather, Inc., a manufacturer of leather interior products for automobiles based in Southfield, Michigan, along with five of its subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 17-12100). The petition reports $100 million to $500 million in both assets...
On September 27, 2017, the Senate passed the Bankruptcy Judgeship Act of 2017. The Senate’s bill is intended to ease the burden on certain overworked bankruptcy courts and also increase bankruptcy fees in larger cases. The House of Representatives passed a different version of the bill earlier in the year. The process to increase bankruptcy...… Continue Reading
Amazing, and improper. On October 6, 2015, I posted about MesoLawyersCare. Recently, I stumbled onto a YouTube video that puts my words to music. Below, screenshots of part of the YouTube, and the text of my prior post. “Meso Lawyers Care ” New Cooperative Marketing by Four Prominent Plaintiff Firms, and Some Investment in Mesothelioma...… Continue Reading
Creditors lacking liens to secure their claim can fare poorly in a bankruptcy case. The “absolute priority rule” is a bedrock principle of bankruptcy law and provides that a creditor at a particular rung of the claim priority hierarchy must be paid in full before any money flows down to junior creditors. Secured creditors reside... Continue Reading…