Tag Archives: bankruptcy issues
True Sale or Not - The Nature of the Factoring Agreement
Did you know… it has been argued that a factoring arrangement over invoices of a company could be challenged as a charge over book debts and thus is void against liquidators of the company unless registered under section 80 of the Companies Ordinance Read More… Continue reading
Gary’s Exit Plan – Up In Smoke With His Perishable Business Model
I had just returned from presenting my “Break It And Make It” business model workshop to three CEO groups in Winnipeg when Gary came to visit with me. Fifteen years earlier he had gone “all in” Read More… Continue reading
Secured Creditors Beware: Crown GST/HST Garnishment May Trump Your Security Interest in an Account Receivable
In the recent decision of the Supreme Court of Canada in Toronto-Dominion Bank and Her Majesty the Queen (2012 SCC 1), the Supreme Court succinctly agreed with the reasons of Justice Noël of the Federal Court of Appeal. Justice Noël Read More… Continue reading
Commercial Division Clarifies Limits of Choice of Law Provision in Indentures
In the recent matter Wilmington Trust Natl. Assn. v. Vitro Automotriz, Index No. 652303/11 (N.Y. Sup. Dec. 5, 2011), Justice Bernard J. Fried of the Commercial Division addressed the obligations of guarantors of indentured notes. Regardless that the issuer Read More… Continue reading
$25 Billion Foreclosure Settlement Announced with the Nation’s Five Largest Mortgage Services Providers
On February 9, 2012, federal and state officials announced a $25 billion foreclosure settlement with the nation’s five largest mortgage services providers: Bank of America, JPMorgan Chase & Co., Wells Fargo & Company Read More… Continue reading
Changes to the German Insolvency Code – A New Frontier for Restructurings
For many years the German Insolvency Code has been criticised for its inflexibility and rigidity in relation to corporate restructurings. As such it has often been remarked that, in contrast to the US and the UK, German insolvency laws do not provide Read More… Continue reading
Seventh Circuit Holds that Treasury Bonds are Riskier than Real Estate and Cannot Provide the Indubitable Equivalence of a Claim
Taking the lead from its recent decision in In re River Road Hotel Partners, in In re River East Plaza, LLC, the Seventh Circuit held that a debtor cannot avoid the lien retention prong of Section 1129(b)(2)(A)(i) by transferring an undersecured creditor’s Read More… Continue reading
Third Circuit Reaffirms Viability of Deepening Insolvency Claim
In Official Committee of Unsecured Creditors v. Baldwin (In re Lemington Home for the Aged), 659 F.3d 282 (3d Cir. 2011), the Third Circuit Court of Appeals held, among other things, that the “deepening insolvency” cause Read More… Continue reading
New Bankruptcy Rules Require Additional Documentation and Notification from Mortgage Holders and Servicers in Individual Debtor and Chapter 13 Cases
Bankruptcy Rule changes, effective December 1, 2011, require mortgage holders and servicers to include additional documentation supporting proofs of claim filed in individual debtor cases. Mortgage holders and servicers must follow these rules or face Read More… Continue reading
Prebankruptcy Planning Related to Employee Issues and Claims
by Arthur T. Carter and Kenric D. Kattner Excerpt: A company contemplating filing for chapter 11 relief should consider certain preparations to make a smooth transition into chapter 11 and to minimize potential claims against the bankruptcy estate. A number of these prebankruptcy preparations relate to employee issues and claims. This article outlines a number of these considerations, including managing employee relations before and during chapter 11. WARN Act Notice The WARN Act requires covered employers to give 60 days' notice (or pay in lieu thereof) to affected employees prior to closing a facility or laying off a large number of employees. There are two situations Continue reading
